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If C invests $20,000 and D invests $30,000 in a partnership, and they agree to s

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Question: If C invests $20,000 and D invests $30,000 in a partnership, and they agree to share profits in the ratio of their investments, what will be D\'s share if the total profit is $50,000?

Options:

  1. $20,000
  2. $30,000
  3. $25,000
  4. $15,000

Correct Answer: $30,000

Solution: 

C\'s investment = 20000, D\'s investment = 30000. Total investment = 50000. D\'s share = (30000/50000) * 50000 = $30,000.

If C invests $20,000 and D invests $30,000 in a partnership, and they agree to s

Practice Questions

Q1
If C invests $20,000 and D invests $30,000 in a partnership, and they agree to share profits in the ratio of their investments, what will be D's share if the total profit is $50,000?
  1. $20,000
  2. $30,000
  3. $25,000
  4. $15,000

Questions & Step-by-Step Solutions

If C invests $20,000 and D invests $30,000 in a partnership, and they agree to share profits in the ratio of their investments, what will be D's share if the total profit is $50,000?
  • Step 1: Identify the amount C invested, which is $20,000.
  • Step 2: Identify the amount D invested, which is $30,000.
  • Step 3: Calculate the total investment by adding C's and D's investments: $20,000 + $30,000 = $50,000.
  • Step 4: Determine the ratio of D's investment to the total investment: D's investment ($30,000) divided by total investment ($50,000). This gives us 30,000 / 50,000.
  • Step 5: Calculate D's share of the profit by multiplying the ratio from Step 4 by the total profit ($50,000): (30,000 / 50,000) * 50,000.
  • Step 6: Simplify the calculation: (30,000 / 50,000) equals 0.6, so 0.6 * 50,000 = $30,000.
  • Step 7: Conclude that D's share of the profit is $30,000.
  • Profit Sharing Ratio – Understanding how to calculate profit shares based on investment ratios.
  • Proportional Distribution – Applying proportional distribution of profits based on the total investment.
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