Question

Ram and Shyam jointly start a business by investing ₹5000 and ₹20000, respectively. The ratio of their profits after one year is:

• A. 5:2
• B. 1:4
• C. 2:5
• D. 2:3

Hint:

Profit Ratio = (Capital A $\times$ Time A) : (Capital B $\times$ Time B). Since Time is 1 year for both, it cancels out.

Answer 1

The Correct Option is B

Concept: In a partnership where the time period of investment is the same for all partners, the profit is distributed in the direct ratio of their capital investments.

Step 1: Identify the investments.
Investment of Ram $= ₹5000$
Investment of Shyam $= ₹20000$

Step 2: Calculate the ratio.
Ratio $= 5000 : 20000$
Divide both sides by 5000:
Ratio $= 1 : 4$.