Three friends, Arya Bhatt, Gauss and Descartes invested ₹24,00,000, ₹30,00,000 and ₹18,00,000 respectively in their business as partners for 3 years. The ratio in which they will divide their profits will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option () -
Investment by Arya Bhatt = ₹24,00,000 for 3 years
Investment by Gauss = ₹30,00,000 for 3 years
Investment by Descartes = ₹18,00,000 for 3 years
Profit sharing ratio ∝ Capital × Time
Arya Bhatt : Gauss : Descartes
$=24\times3 : 30\times3 : 18\times3$
$=72 : 90 : 54$
Divide by 18
$=4 : 5 : 3$
The ratio of profit sharing is 4 : 5 : 3.