Question

Tina and Meera started a business with ₹1,00,000 and ₹80,000 respectively. After 6 months, Meera added ₹40,000 more. Tina withdrew ₹20,000 at the same time. What is the profit-sharing ratio at the end of 1 year?

• A. 9 : 10
• B. 5 : 6
• C. 7 : 4
• D. 2 : 3

Answer 1

Answer:

A. 9 : 10

The profit-sharing ratio between Tina and Meera at the end of 1 year is 9:10. This ratio is calculated by multiplying each investment amount by the number of months it remained active.

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To find the final profit-sharing ratio, we calculate the total weighted capital (Investment × Time) for both partners over the 12-month period:

1. Tina's Total Investment Value:

• First 6 months: ₹1,00,000 × 6 = ₹6,00,000

• Next 6 months (after withdrawing ₹20,000): ₹80,000 × 6 = ₹48,000

• Tina's Total Equivalent Capital: ₹6,00,000 + ₹48,00,00 = ₹10,80,000

2. Meera's Total Investment Value:

• First 6 months: ₹80,000 × 6 = ₹4,80,000

• Next 6 months (after adding ₹40,000): ₹1,20,000 × 6 = ₹7,20,000

• Meera's Total Equivalent Capital: ₹4,80,000 + ₹7,20,000 = ₹12,00,000

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Final Ratio Simplifying

$\text{Ratio} = \frac{\text{Tina's Capital}}{\text{Meera's Capital}} = \frac{10,80,000}{12,00,000}$

By dividing both sides by their greatest common divisor (1,20,000), we get:
$\text{Ratio} = \mathbf{9:10}$