A, B, C and D enter into a partnership. They invest ₹40000, ₹80000, ₹90000 and ₹120000 respectively. At the end of the first year, B withdraws ₹30,000 and A adds another ₹20,000, while at the end of the second year, C withdraws ₹40,000. In what ratio (in ascending order) will the profit be shared at the end of 3 years?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A, B, C, D
When the capitals change during the period, the profit is shared in the ratio of capital × time for each partner, adding up the parts for each year. In thousands of rupees, for the 3 years:
A: 40 for 1 year, then 60 for 2 years: \(40+120=160\)
B: 80 for 1 year, then 50 for 2 years: \(80+100=180\)
C: 90 for 2 years, then 50 for 1 year: \(180+50=230\)
D: 120 for 3 years: \(360\)
The ratio is A : B : C : D = 160 : 180 : 230 : 360 = 16 : 18 : 23 : 36, so in ascending order the shares are those of A, B, C and D.