A started a business with ₹30,000. B joined after 6 months with ₹40,000. At the end of the year, what is the profit-sharing ratio?
Show answer & explanation
Correct answer: D
Explanation
Given:
A's investment = Rs. 30,000 (12 months)
B's investment = Rs. 40,000 (after 6 months, i.e., 6 months)
A's investment × time = 30,000 × 12 = 360,000
B's investment × time = 40,000 × 6 = 240,000
Ratio = 360,000 : 240,000 = 3 : 2