Question

Arun starts a business with Rs. 8000 and Avinash joined him after 6 months with an investment of Rs. 40000. What will be the ratio of the profits of Arun and Avinash at the end of the year?

• A. 2:5
• B. 1:5
• C. 5:2
• D. 5:1

Hint:

Profit shares depend on both the invested amount and the duration of investment; multiply them to get the ratio.

Answer 1

The Correct Option is A

Step 1: Understand profit sharing in partnership
Profits are shared in the ratio of the product of investment amount and time for which the money was invested.
Step 2: Calculate Arun's investment-time product
- Investment = Rs 8000
- Time = 12 months (since started at beginning)
\[ 8000 \times 12 = 96000 \] Step 3: Calculate Avinash's investment-time product
- Investment = Rs 40000
- Time = 6 months (joined after 6 months)
\[ 40000 \times 6 = 240000 \] Step 4: Ratio of profits
\[ \text{Arun} : \text{Avinash} = 96000 : 240000 = 2 : 5 \] Thus, Option (A) 2:5 is correct.