Mohan started a business with ₹80,000. After 4 months, Sohan joined with ₹1,20,000. After another 4 months, Mohan withdrew ₹20,000. What is the ratio of their profits at the end of the year?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 11:12.
Mohan’s investment:
For first 4 months = 80000 × 4 = 320000
For the next 4 months = 80000 × 4 = 320000
For the last 4 months = 60000 × 4 = 240000
Total = 320000 + 320000 + 240000 = 880000
Sohan’s investment = 120000 × 8 = 960000
Profit ratio of Mohan and Sohan = 880000 : 960000 = 11 : 12