Bill and Bob share profits of their partnership firm in the ratio of 4:1.If the net profit of the firm is $25,000,calculate the share of Bill's profit.
A)$25,000
B)$15,000
C)$20,000
D)$5000

Question

Quizplus · Accepted Answer

We can use the concept of ratios to find the share of each partner.

Let's first add up the ratio numbers: 4+1 = 5

This means that the total profit is divided into 5 equal parts, with Bill getting 4 parts and Bob getting 1 part.

To find Bill's share, we can multiply his ratio (4) by the total profit:

Share of Bill = 4/5 * $25,000

Share of Bill = $20,000

Therefore, the answer is C) $20,000

Bill and Bob Share Profits of Their Partnership Firm in the Ratio