X and Y invested in a business for the same period. They earned some profit…
2024
X and Y invested in a business for the same period. They earned some profit which they divided in the ratio of 2 : 3. If X invested Rs. 40,000, the amount invested by Y is:
Answer: C. Rs. 60000 — ConceptFor partners who invest for the same duration, profit shares are directly proportional to the capital invested. Therefore, the profit-sharing ratio…
- A.
Rs. 20000
- B.
Rs. 40000
- C.
Rs. 60000
- D.
Rs. 80000
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Show answer & explanation
Correct answer: C
Concept
For partners who invest for the same duration, profit shares are directly proportional to the capital invested.
Therefore, the profit-sharing ratio equals the investment ratio, and a missing investment can be found by setting up an equivalent proportion.
Application
Let Y's investment be Rs. y. The investment ratio is 40,000 : y.
Use the given profit ratio: 40,000 : y = 2 : 3.
Cross-multiply: 2y = 40,000 × 3 = 1,20,000.
Divide by 2: y = 1,20,000 ÷ 2 = 60,000.
Cross-check
The ratio 40,000 : 60,000 reduces to 2 : 3, which matches the stated profit-sharing ratio. Hence, Y invested Rs. 60,000.