Practice mode Partnership

Three friends invest Rs. 20,000, Rs. 30,000 and Rs. 50,000 in a shop. If the profit is Rs. 25,000, what is the share of the third friend?

Correct answer A. Rs. 12,500

Explanation

Capital ratio = 20 : 30 : 50 = 2 : 3 : 5. The third friend's share = 25,000 × 5/10 = Rs. 12,500.

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