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P and Q started a business investing Rs 85000 and Rs 15000 resp. In what ratio the profit earned after 2 years be divided between P and Q respectively.
  • a)
    17 : 5
  • b)
    17 : 3
  • c)
    17 : 6
  • d)
    17 : 7
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
P and Q started a business investing Rs 85000 and Rs 15000 resp. In wh...
In this type of question as time frame for both investors is equal then just get the ratio of their investments.
P : Q = 85000 : 15000
= 85 : 15
= 17 : 3
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Most Upvoted Answer
P and Q started a business investing Rs 85000 and Rs 15000 resp. In wh...
Calculation of Profit Sharing Ratio
Profit sharing ratio is determined based on the ratio of the investments made by the partners. In this case, P invested Rs 85000 and Q invested Rs 15000.

Calculation of P's Investment Ratio
P's investment = Rs 85000
Q's investment = Rs 15000
P's investment ratio = 85000 : 15000 = 17 : 3

Profit Sharing Ratio
Therefore, the profit sharing ratio between P and Q will be 17 : 3 after 2 years. This means that for every Rs 17 of profit earned, P will receive Rs 17 and Q will receive Rs 3.
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P and Q started a business investing Rs 85000 and Rs 15000 resp. In what ratio the profit earned after 2 years be divided between P and Q respectively.a)17 : 5b)17 : 3c)17 : 6d)17 : 7Correct answer is option 'B'. Can you explain this answer?
Question Description
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