Question Details

Raj and Priya started a business with ₹1,50,000 and ₹1,20,000 respectively. After 6 months, Priya invested an additional ₹60,000 and Raj withdrew ₹30,000. What is their profit-sharing ratio at the end of 1 year?

Options

A

9:10

B

12:11

C

13:14

D

10:11

Show Answer

Correct Answer :

Option A

9:10

Solution :

Correct Answer: Option 9:10

To find the profit-sharing ratio between Raj and Priya at the end of 1 year (12 months), we need to calculate the total equivalent investment made by each person over the 12-month period.

Profit-sharing ratio is calculated as:
Ratio = Total Investment of Raj : Total Investment of Priya

Step 1: Calculate Raj's total investment for 12 months
- For the first 6 months, Raj's investment was ₹1,50,000.
- After 6 months, Raj withdrew ₹30,000. So, his remaining investment for the next 6 months was:
₹1,50,000 - ₹30,000 = ₹1,20,000.

Raj's equivalent 1-month investment:
(150000×6)+(120000×6)

=900000+720000=1620000

Step 2: Calculate Priya's total investment for 12 months
- For the first 6 months, Priya's investment was ₹1,20,000.
- After 6 months, Priya invested an additional ₹60,000. So, her new investment for the next 6 months was:
₹1,20,000 + ₹60,000 = ₹1,80,000.

Priya's equivalent 1-month investment:
(120000×6)+(180000×6)

=720000+1080000=1800000

Step 3: Determine the profit-sharing ratio
Ratio of Raj : Priya = 1,620,000 : 1,800,000

Dividing both sides by 180,000:
1620000180000:1800000180000=9:10

Thus, their profit-sharing ratio at the end of 1 year is 9:10.

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