A, B, and C invested ₹50,000, ₹75,000, and ₹1,25,000 respectively in a business. If the total profit at the end of the year is ₹50,000, what is A’s share of the profit?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹10,000.
The ratio of profits of the partners is equal to the ratio of their respective investments.
Ratio of investments of A, B and C = 50000 : 75000 : 125000
⇒ 50 : 75 : 125 = 2 : 3 : 5
Now, share of A = (Total Profit/10) × 2
⇒ 2 × 50000/10 = 10000