P and Q invested Rs. 4 lakhs and Rs. 10 lakhs respectively to start a business. P manages the business and receives a monthly salary of Rs. 5,000. If the total profit at the end of the year amounts to Rs. 2 lakhs, what is the ratio of their final earnings?

Explanation

P and Q's investment ratio is 4 lakhs to 10 lakhs, which simplifies to 2:5. P receives a yearly salary of 12 × 5,000 = Rs. 60,000. The total profit is Rs. 200,000, but after deducting P's salary, Rs. 140,000 remains to be divided according to their investment ratio. P's share of profit is (2/7) × 140,000 = Rs. 40,000, and Q's share is Rs. 100,000. Therefore, P's total earning is Rs. 60,000 + Rs. 40,000 = Rs. 100,000, and Q's total earning is Rs. 100,000. Hence, their earnings are equal, resulting in a ratio of 1:1.