A started a business with ₹30,000. B joined after 5 months with ₹40,000. At the end of the year, what is their profit-sharing ratio?
Show answer & explanation
Correct answer: B
Explanation
Given:
A's investment = ₹30,000 (12 months)
B's investment = ₹40,000 (after 5 months, i.e. 7 months)
A = 30,000 × 12 = 360,000
B = 40,000 × 7 = 280,000
Ratio = 360,000 : 280,000 = 9 : 7