In a partnership business, B’s capital was \(\frac{1}{3}\)rd of A’s capital. If after 7 months, B withdraw \(\frac{1}{5}\)th of his capital and after 2 more months A withdraw \(\frac{1}{5}\)th of the capital, then their profit ratio at the end of one year will be:
Answer & explanation
Correct answer: option 4
Let investment of A = 15R
and investment of B = 5R
After withdrawal:
Investment of A = 12R
Investment of B = 4R
ATQ,
(A1 : A) : ( B : B1)
Inv. 12 : 15 : 5 : 4
Time 3 : 9 : 7 : 5
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Profit: (36 + 135) : (35 + 20)
171 : 55
(*Profit ratio = Inv. ratio × time ratio)