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Karan and Kamal invest ₹30,000 and ₹40,000 respectively. Karan reinvests his first-year profit of ₹7,000 into the business. Find the ratio of their second-year profits.

1. 23: 15
2. 23: 160
3. 14: 19
4. 33: 40

Correct answer: 33: 40

Solution

For the second year, Karan’s capital becomes ₹37,000 after reinvesting ₹7,000 profit, while Kamal’s remains ₹40,000. Profit ratio in partnership is proportional to capital, so the ratio is 37:40; however, among the given options the intended answer corresponds to 33:40 only if the question data is OCR-corrupted. Using the stated values, the correct ratio should be 37:40.

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