A starts a business with ₹9000. B joins after 6 months with ₹45000. Using capital–time (capital-months), what is the ratio of profits of A and B at the end of the year?
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A1 : 5
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B5 : 2
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C2 : 5
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D5 : 1
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E3 : 5
Answer
Correct Answer: 2 : 5
Explanation
Introduction / Context:Different joining times require time-weighted capital. Compute capital-months for both partners and then form the profit ratio A : B accordingly.
Given Data / Assumptions:
- A: ₹9000 for 12 months.
- B: ₹45000 for 6 months (joined after 6 months).
- No salary, no interest, profits proportional to capital-months.
Concept / Approach:Profit share ∝ capital × time. Multiply and reduce the ratio to simplest terms.
Step-by-Step Solution:A’s capital-months = 9000 * 12 = 108000B’s capital-months = 45000 * 6 = 270000Ratio A : B = 108000 : 270000 = 2 : 5
Verification / Alternative check:Divide both by 54000 to confirm 2 : 5.
Why Other Options Are Wrong:1 : 5 or 5 : 2 do not match the computed capital-months. 5 : 1 reverses the true dominance of B’s contribution.
Common Pitfalls:Using only capital (9k vs 45k) and forgetting time, which would give the wrong split.
Final Answer:2 : 5