Questions :
Ravi and Suman started a business with ₹60,000 and ₹90,000 respectively. After 6 months, Suman added ₹30,000 more. Ravi withdrew ₹10,000 at the same time. What is their profit-sharing ratio at the end of 1 year?
Options :
- 11:21
- 5:6
- 12:23
- 2:3
correct answer : a)
Explanation :
Profit-sharing ratio is proportional to the product of capital and time.
Ravi’s capital-months = (₹60,000 × 6) + (₹50,000 × 6)
= 3,60,000 + 3,00,000
= 6,60,000
Suman’s capital-months = (₹90,000 × 6) + (₹1,20,000 × 6)
= 5,40,000 + 7,20,000
= 12,60,000
Required ratio = 6,60,000 : 12,60,000
= 11 : 21
Therefore, the correct answer is option (a) 11:21. The ratios 5:6, 12:23, and 2:3 do not match the capital-time investment ratio and are therefore incorrect.