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A and B’s capitals are in the ratio 4:1. If A’s capital is ₹40,000, what will be B’s capital?

Answer and explanation

Correct answer: ₹10,000

The governing concept is proportional division using a capital ratio. A:B=4:1 means A’s capital represents four equal ratio parts, whereas B’s capital represents one equal part. Since A’s four parts total ₹40,000, the value of one part is ₹40,000÷4=₹10,000. B has exactly one part, so B’s capital is ₹10,000. Hence option A is correct. A quick verification is 40,000:10,000=4:1, which agrees with the given ratio. Option B would make the ratio 2:1, option C would make it 1:1, and option D would make A:B=4:5, so none of those preserves the stated relationship.

Related tags

Capital-RatioRatio-CalculationCapital-AccountsPartnershipCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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