Kiran starts a business with an investment of Rs. 40000. Anil joins her after three months with a capital of Rs. 30000. If Kiran withdraws 4 months before the end of the year, find the ratio in which they share the profits at the end of the year.
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$21 : 32$
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$32 : 19$
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$32 : 27$
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$25 : 31$
C
Correct answer
Explanation
Kiran's investment of Rs. 40000 was active for 8 months (12-4 months withdrawn). Anil's investment of Rs. 30000 was active for 9 months (joined 3 months late, stayed till year-end). Profit sharing ratio = (40000 × 8) : (30000 × 9) = 320000 : 270000 = 32 : 27. This is the standard time-weighted partnership calculation.