Two partners A and B share profits of business in ratio of 5 : 7, partner A sells 20% of its stakes (investment) to C and now acts as silent partner with only 5% of profit to be shared on his name and rest profits are distributed in ratio of 3 : 2 to B and C. Choose the correct option from the following if initially both partners invested a sum of Rs 3, 60,000 together and earned 25% profit on it.
Quantity I: Calculate amount of stakes purchased by C without considering profit earned.
Quantity II: Calculate profit earned by C after A became silent partner of firm.1
Quantity I ≥ Quantity II
2
Quantity I ≤ Quantity II
3
Quantity I < Quantity II
4
Quantity I = Quantity II
5
Quantity I > Quantity II