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If A and B's capitals are to be in the profit-sharing ratio 3 : 2 and the total capital is Rs 100000, what will be B's capital?

Answer and explanation

Correct answer: Rs 40000

Capitals are divided in the profit-sharing ratio. Total parts = 3 + 2 = 5; B's share = 2 parts. Thus B's capital = \(\frac{2}{5}\times 100000 = 40000\) rupees. Option B (Rs 60000) is incorrect because that equals A's share (3/5), option C (Rs 50000) would be from an equal split mistake, and option D is a calculation error. Exam tip: always add ratio numbers to get total parts, then multiply the total capital by the partner's fraction.

Related tags

Partnership AccountsCapital AccountsProfit Sharing RatioRatio ComputationPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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