Multiple choice

The Revenue Profits of a Subsidiary company S Ltd. is $Rs.1,20,000$. Ratio between holding and minority is $3 : 1$. What is share of revenue profits of Holding Company H. Ltd.?

  1. $Rs. 30,000$
  2. $Rs. 60,000$
  3. $Rs. 90,000$
  4. $Rs. 45,000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The total revenue profit is 1,20,000. The ratio between holding and minority is 3:1, meaning the holding company gets 3/4 of the total. 1,20,000 * (3/4) = 90,000.

AI explanation

The total profit of Rs. 1,20,000 is divided between the holding and minority companies in a 3:1 ratio, meaning there are 4 total parts. The holding company's share is 3/4 of the total profit, calculated as (3/4) * 120000 = 90000. Therefore, the revenue profit share of the holding company is Rs. 90,000.

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