Ravi and Sunil are partners in a business. Ravi invests Rs. 15,000 for 8…
2025
Ravi and Sunil are partners in a business. Ravi invests Rs. 15,000 for 8 months, and Sunil invests Rs. 8,000 for 10 months. What is the ratio of their profits at the end of one year?
- A.
1:3
- B.
2:3
- C.
3:2
- D.
3:1
Show answer & explanation
Correct answer: C
Concept: In a partnership, when partners invest different amounts for different lengths of time, profit is shared not in the ratio of the amounts invested alone, but in the ratio of each partner's “capital × time” — the equivalent capital each partner effectively keeps invested over the reference period.
Application:
Ravi's equivalent capital = Investment × months invested = Rs. 15,000 × 8 = Rs. 1,20,000.
Sunil's equivalent capital = Investment × months invested = Rs. 8,000 × 10 = Rs. 80,000.
Profit ratio (Ravi : Sunil) = 1,20,000 : 80,000.
Divide both terms by their HCF, 40,000, to reduce the ratio to lowest terms: 3 : 2.
Cross-check: Multiplying the reduced ratio 3 : 2 back by 40,000 restores 1,20,000 : 80,000, matching the two capital-time products computed above, confirming the ratio 3 : 2.