A, B and C enter into a partnership and invest their capital in the ratio 1 : 2 : 3. Their period of investment are in the ratio 3 : 2 : 1. In what ratio would they distribute their profits?Options3:4:34:2:51:5:2None
Question
A, B and C enter into a partnership and invest their capital in the ratio 1 : 2 : 3. Their period of investment are in the ratio 3 : 2 : 1. In what ratio would they distribute their profits?Options3:4:34:2:51:5:2None
Solution
The profit distribution in a partnership is calculated based on the capital invested and the time period for which the capital was invested.
Step 1: Calculate the capital-time product for each partner. This is done by multiplying the ratio of capital invested by the ratio of the time period of investment.
For A, the capital-time product is 13 = 3. For B, the capital-time product is 22 = 4. For C, the capital-time product is 3*1 = 3.
Step 2: The profit distribution ratio is the same as the capital-time product ratio.
So, the profit would be distributed in the ratio 3:4:3.
Therefore, the correct option is 3:4:3.
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