4.	Jed and Ej decided that their profit and loss sharing ratio should be equal to  their initial capital investment. If Jed and Ej had capital balances of  P200,000.00 and P100,000.00, respectively, how much profit would Ej get if  Jed got P50,000.00 for last year? 

Jed and Ej are sharing profits based on their initial capital investments, which are P200,000 for Jed and P100,000 for Ej. The ratio of their profit-sharing will be in proportion to their capital investment.

To calculate Ej's share of profit, follow these steps:

1. Determine the ratio of their capital investments:
   - Jed's capital: P200,000
   - Ej's capital: P100,000
   - The ratio of Jed to Ej is 200,000:100,000, or 2:1.

2. Since Jed got P50,000, that corresponds to his share of the profit based on the 2:1 ratio. This means for every P2 Jed receives, Ej receives P1.

3. Let Ej’s profit be denoted by \( x \).

4. According to the 2:1 ratio:
   \[
   \frac{50,000}{x} = \frac{2}{1}
   \]

5. Solving for \( x \):
   \[
   50,000 = 2x \implies x = \frac{50,000}{2} = 25,000
   \]

Thus, Ej would receive **P25,000** in profit.

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Would you like more details or have any questions?

Here are 5 related questions to further explore:

1. How would the profit be shared if Ej had invested more capital than Jed?
2. What would be Ej's share if Jed's capital was P300,000 instead of P200,000?
3. If the total profit for the year was P150,000, how would it be split between Jed and Ej?
4. What would happen if Jed and Ej decided to split profits equally regardless of capital investment?
5. How would losses be distributed if they occur?

**Tip**: Understanding profit-sharing ratios based on capital helps with partnership agreements and business planning.

Jed and Ej decided that their profit and loss sharing ratio should be equal to their initial capital investment. If Jed and Ej had capital balances of P200,000.00 and P100,000.00, respectively, how much profit would Ej get if Jed got P50,000.00 for last year?

Discover how to calculate profit sharing based on capital investment using a real-world example involving Jed and Ej. If Jed receives P50,000, learn how Ej's profit is determined through the proportionality theorem. Perfect for Grades 10-12, this problem covers key concepts in ratio and profit sharing.

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