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If A and B share profits in the ratio 3 : 2 and the total profit is Rs 50,000, how much will be credited to A's account?

Answer and explanation

Correct answer: Rs 30,000

Profit is divided in the given ratio. Sum of ratio parts = 3 + 2 = 5. A's share = 3/5 of the total profit. So A is credited = 50,000 × (3/5) = Rs 30,000. Why other options are wrong: Rs 25,000 would be an equal split (not the given ratio); Rs 20,000 is B's share (2/5 of total); Rs 50,000 is the entire profit, not A's share. Exam tip: always add the ratio parts first, then multiply the total by the relevant fraction (e.g.,

total ×
(3/5)).

Related tags

Profit SharingPartnership AccountsCapital AccountRatio ProblemsNumericalCapital AccountsPartnership Accounts Basic ConceptsAccountancy

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