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Sumit and Ravi started a business by investing Rs 85000 and 15000 respectively. In what ratio the profit earned after 2 years be divided between Sumit and Ravi respectively.
  • a)
    17 : 1
  • b)
    17 : 2
  • c)
    17 : 3
  • d)
    17 : 4
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Sumit and Ravi started a business by investing Rs 85000 and 15000 resp...
Note: If you have clear concept of ratio and proportion chapter then it will really easy for you to solve partnership problems.
P : Q = 85000 : 15000 = 17 : 3
Important to note there that if both have invested for different period of times then we had to multiply with number of months to get the desired ratio.
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Most Upvoted Answer
Sumit and Ravi started a business by investing Rs 85000 and 15000 resp...
Calculation of Profit Sharing Ratio:

Step 1: Calculate the total investment made by Sumit and Ravi
Total investment = Rs 85000 + Rs 15000
Total investment = Rs 100000

Step 2: Calculate the profit sharing ratio based on their investments
Profit sharing ratio = Investment of Sumit : Investment of Ravi
Profit sharing ratio = 85000 : 15000
Profit sharing ratio = 17 : 3
Therefore, the profit earned after 2 years will be divided between Sumit and Ravi in the ratio of 17 : 3.
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Sumit and Ravi started a business by investing Rs 85000 and 15000 respectively. In what ratio the profit earned after 2 years be divided between Sumit and Ravi respectively.a)17 : 1b)17 : 2c)17 : 3d)17 : 4Correct answer is option 'C'. Can you explain this answer?
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