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In a partnership, capitals are maintained in the profit ratio \(2:1\). If the total capital is \(\text{Rs }90,000\), what is A's capital?

Answer and explanation

Correct answer: \(\text{Rs }60,000\)

Capital ratio equals profit ratio when capitals are maintained in that ratio. So \(A:B=2:1\). Total ratio parts \(=2+1=3\). Therefore A's share of total capital is \(\frac{2}{3}\times 90,000=60,000\). Hence A's capital is \(\text{Rs }60,000\).

Related tags

Partnership AccountsCapital AccountsProfit RatioCapital RatioProportion

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