A and B invest ₹40,000 and ₹60,000 respectively in a business. What is A's share in a profit of ₹50,000?

Correct — B. No time period is given, so profit is split in the ratio of capital.

A : B = 40,000 : 60,000 = 2 : 3
Total parts = 2 + 3 = 5

A's share = 2⁄5 × 50,000 = ₹20,000 → option (b)

Check: B gets 3⁄5 × 50,000 = ₹30,000, and 20,000 + 30,000 = 50,000.

Why the others are wrong

• (a)
  ₹15,000 — ₹15,000 is 3⁄10 of the profit. A put in 40,000 of the ₹1,00,000 total capital, which is 4⁄10, so A's share is ₹20,000.
• (c)
  ₹25,000 — ₹25,000 is an equal split. Partners share equally only when capital × time is equal, and A's ₹40,000 is less than B's ₹60,000.
• (d)
  ₹30,000 — ₹30,000 is B's share, 3⁄5 of the profit. The larger share goes to the larger investor, and that is B, not A.

In a partnership, profit is divided in the ratio of each partner's capital × time. When both partners invest for the same period, time cancels and the ratio becomes the capital ratio.

Reduce the capitals first (40,000 : 60,000 = 2 : 3), then give each partner their parts over the total parts.

Key facts

• Profit ratio = capital × time for each partner.
• With equal periods, the profit ratio equals the capital ratio.
• 40,000 : 60,000 reduces to 2 : 3, so A gets 2⁄5 of the profit.

Common traps

• Picking ₹30,000, the larger share, when the question asks for A, the smaller investor.
• Taking A's fraction as 2⁄3 (A's parts over B's parts) instead of 2⁄5 (A's parts over the total).

No directly related past PYQ was found.