A and B start a business with the capital of Rs. 2,00,000 and 1,00,000 respectively. They get Rs. 60,000 as a profit in the end of the year. Find the difference of A’s and B’s profit.
Answer & explanation
Correct answer: option 3
A : B
Capital: 2,00,000 : 1,00,000
Capital Ratio: 2 : 1
Profit Ratio : 2 : 1 = 3 (Total Profit)
*When time is same then Investment ration becomes Profit ratio*
Here,
3R = 60,000
1R = 20,000
Now,
Difference of profit of A & B = 2R - 1R = 1R = 20,000/-