Q.If the profit-sharing ratio of two friends in a partnership business is \(\cfrac{1}{2}:\cfrac{1}{3}\), then their capital ratio is—? (a) 2 : 3 (b) 3:2 (c) 1:1 (d) 5:3
Answer: B
Capital ratio = Profit-sharing ratio \(\cfrac{1}{2}:\cfrac{1}{3}\)
\(= 3:2\).
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