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 A started a business with Rs.32,000 after 4 months B joins with the business by investing Rs.48,000.At the end of the year, in what ratio should share their profit ?
  • a)
    1:1
  • b)
    7:6
  • c)
    5:7
  • d)
    9:5
  • e)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A started a business with Rs.32,000 after 4 months B joins with the bu...
Answer – A.1:1 Explanation : 32000*12 : 48,000*8 = 32*12 : 42*8
384 : 384 = 1:1
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Most Upvoted Answer
A started a business with Rs.32,000 after 4 months B joins with the bu...
Given information:
A started the business with Rs.32,000
B joins after 4 months with Rs.48,000
End of the year profit sharing ratio is to be determined

Calculation:
Let's assume A is working for 12 months and B is working for 8 months.
Then the profit sharing ratio can be calculated as follows:

A's investment * A's working months : B's investment * B's working months

= 32000*12 : 48000*8

= 384000 : 384000

= 1 : 1

Therefore, the profit sharing ratio is 1:1, which means both A and B will share the profit equally.
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Community Answer
A started a business with Rs.32,000 after 4 months B joins with the bu...
Answer – A.1:1 Explanation : 32000*12 : 48,000*8 = 32*12 : 42*8
384 : 384 = 1:1
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