In a partnership business, B’s capital was \(\frac{1}{3}\)rd of A’s capital. If after 7 months, B withdraw \(\frac{1}{4}\)th of his capital and after 2 more months A withdraw \(\frac{1}{3}\)rd of the capital, then their profit ratio at the end of one year will be:
Answer & explanation
Correct answer: option 3
Let investment of A = 12R
and investment of B = 4R
After withdrawal:
Investment of A = 8R
Investment of B = 3R
ATQ,
(A1 : A) : ( B : B1)
Inv. 8 : 12 : 4 : 3
Time 3 : 9 : 7 : 5
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Profit: (24 + 108) : (28 + 15)
132 : 43
(*Profit ratio = Inv. ratio × time ratio)