Ravi started a business with a sum of ₹50,000. Sohan joined him 6 months later with a sum of ₹30,000. At what respective ratio will the two share the profit after 2 years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 20 : 9.
Total investment = Investment × Time
Total investment of Ravi = 50000 × 2 = 100000
Total investment of Sohan = 30000 × 1.5 = 45000 (Sohan joined after 6 months)
Ratio of profits = Ratio of investments
So, required ratio = 100000 : 45000
⇒ 100 : 45 = 20 : 9