A started a business with ₹30,000. B joined after x months with ₹40,000. At the end of the year, their profit-sharing ratio is 3:2. What is the value of x?
Show answer & explanation
Correct answer: B
Explanation
Given:
A's investment = Rs. 30,000 (12 months)
B's investment = Rs. 40,000 (12 − x months)
Profit ratio = 3 : 2
A's investment × time = 30,000 × 12 = 360,000
B's investment × time = 40,000 × (12 − x)
360,000 : 40,000(12 − x) = 3 : 2
360,000 / [40,000(12 − x)] = 3/2
360,000 × 2 = 3 × 40,000(12 − x)
720,000 = 120,000(12 − x)
6 = 12 − x
x = 6 months