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If A and B share profits in the ratio 1:4 and the total profit is Rs. 50,000, what is A's share?

Answer and explanation

Correct answer: Ten thousand rupees

Total parts = 1 + 4 = 5. One part = 50,000 ÷ 5 = 10,000 rupees, so A's share = one part = 10,000 rupees. Closest distractor: 40,000 would be B's share (4 parts), not A's. Exam tip: always add the ratio parts first, divide total profit by that sum, then multiply by the required partner's parts.

Related tags

Profit SharingPartnership AccountsRatioNumericalProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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