question_answer

A and B started a business with Rs. 20000 and Rs. 35000, respectively. They agreed to share the profit in the ratio of their capital. C joins the partnership with the condition that A, B and C will share profit equally and pays Rs. 220000 as premium for this, to be shared between A and B. This is to be divided between A and B in the ratio of [SSC CGL Tier II, 2010]

A) 10 : 1

B) 1 : 10

C) 9 : 10

D) 10 : 9

Correct Answer: B

Solution :

[b] Ratio of total capital of A and B \[=20000\times 12:35000\times 12=240000:420000\] Now, C gives to Rs. 220000 to both to done the capital equal. \[\therefore \] As capital : B's capital             \[\therefore \] Required ratio of divided amount \[=20000:200000=1:10\] Hence, A and B should divide the amount in the ratio of 1 : 10.