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Question

M started a business with Rs. 25,000. N joined him after 4 months with Rs 20,000. After 2 more months, M withdrew Rs. 10,000 of his capital and 2 more months later, N brought in Rs. 10,000 more. What should be the ratio in which they should share their profits at the end of the year?

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Solution

Their total investment Ratio,
=(25000×6+15000×6):(20000×4+30000×4)
=150+90:80+120
=240:200=5:4

Thus their profit ratio =5:4

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