Multiple choice

A and B started a business in partnership by investing Rs. 6000 and Rs. 8000, respectively. If after 9 months, B left the business, what would be the ratio of profit sharing of A to B?

  1. 1 : 1

  2. 1 : 2

  3. 1 : 3

  4. 3 : 1

  5. None of these
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A Correct answer
Explanation

Ratio = (Investment A * Time A) : (Investment B * Time B). A invested 6000 for 12 months, B invested 8000 for 9 months. Ratio = (6000*12) : (8000*9) = 72000 : 72000 = 1 : 1.

AI explanation

The profit sharing ratio is determined by the product of investment and time, where A's capital was invested for 12 months and B's for 9 months. The effective capital ratio of A to B is (6000 * 12) : (8000 * 9), which simplifies to 72000 : 72000. Since their effective investments are identical, their profit sharing ratio is 1 : 1.

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