Alok starts a business with ₹90,000. After 3 months, Deepak joins with ₹1,20,000. After 6 months from the beginning, Alok increases his investment by ₹30,000. Deepak leaves the business 3 months before the end of the year. What is their profit-sharing ratio?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 7:4.
Profit share ∝ Capital × Time
Alok = (90000 × 6) + (120000 × 6) = 540000 + 720000 = 1260000
Deepak joins at 3 months, leaves at 9 months
Deepak = 120000 × 6 = 720000
Alok : Deepak = 1260000 : 720000 = 7 : 4