If P and Q invested in a business, and the profit-sharing ratio is 3:4, and P invested Rs 30,000, how much did Q invest?
Show answer & explanation
Correct answer: B
Explanation
Given:
Profit Ratio = 3 : 4
P's Investment = 30,000
Formula:
Profit Ratio = Investment Ratio
P : Q = 3 : 4
3 parts = 30,000
1 part = 30,000 / 3 = 10,000
Q's Investment = 4 × 10,000 = ₹40,000