A and B start a business with Rs. 30,000 and 20,000 respectively. After 4 months C joins them with the capital of Rs. 10,000 and after next 4 months A takes away half of his capital. Find their profit sharing ration at the end of the year.
Answer & explanation
Correct answer: option 1
A : B : C
Capital 30000 : 20000 : 10000
Capital Ratio 30 : 20 : 10
ATQ,
⇒ C invest for 8 months,
⇒ A invest full capital for 8 months and half capital for 4 months.
Now,
Profit ratio = Capital ratio × time
Therefore,
A : B : C
Profit Ratio⇒ (30 x 8) + (15 x 4) : (20 x 12) : (10 x 8)
300 : 240 : 80
15 : 12 : 4