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Amit started a business with Rs 1,50,000. Five months later Rajesh joined with Rs 1,20,000. Two months after that, Amit withdrew Rs 60,000. At the end of one year, in what ratio should the annual profit be divided between Amit and Rajesh?

1. 6 : 5
2. 25 : 14
3. 8 : 5
4. 19 : 17

Correct answer: 25 : 14

Solution

Capital-months for Amit = 150000x7 + 90000x5 = 1050000 + 450000 = 1500000. For Rajesh = 120000x7 = 840000. The ratio 1500000 : 840000 simplifies to 25 : 14.

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