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If A and B share a loss in the ratio 5:2 and the total loss is ₹70,000, what is B's share?

Answer and explanation

Correct answer: Twenty thousand rupees

Ratio 5:2 means total parts = 5+2 = 7. One part = ₹70,000 ÷ 7 = ₹10,000. B's share = 2 parts = 2 × ₹10,000 = ₹20,000. The nearest distractor ₹50,000 is wrong and would result from mistakenly giving B 5 parts instead of 2. Exam tip: always add the ratio parts first, divide the total by that sum, then multiply by the partner's number of parts.

Related tags

Partnership AccountsLoss SharingRatio CalculationsNumericalEasyProfit DistributionPartnership Accounts Basic ConceptsAccountancy

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