PARTNERSHIP

PARTNERSHIP 

When two or more than two persons run a business jointly, they are called Partners and the deal is known as Partnership. 

Concepts

• Person's Profit = Investment x Time Period
• Profit = Invested Capital x Invested Time
• The ratio of investment in Partnership is calculated by multiplying the invested amount with time for which it has been invested.
• The ratio of sharing profit is equal to the ratio of the investment made by the Partners. 

Ratio of Division of Gains

1. When investments of all the Partners are for the same time, the gain or loss is distributed among the partners in the ratio of their investments. 

        

        Suppose A and B invest Rs.x & Rs.y respectively for a year in a business, then at the end of the year :- (A's share of profit) ∶ (B's share of profit) = x ∶ y

2. When investments are for different time periods, then equivalent capitals are calculated for a unit of time by taking (capital x number of units of time). Now, the gain or loss is divided in the ratio of their capitals. 

        

        Suppose A invests Rs.x for p months and B invests Rs.y for  q months, then 

 (A's share of profit) ∶ (B's share of profit) = xp ∶ yq

1. A started a business investing Rs.45,000. After 3 months, B joined him with a capital of Rs.60,000. After another 6 months, C joined them with a capital of Rs.90,000. At the end of the year, they made a profit of Rs.16,500. Find the share of each. (Ans. Rs.6600, Rs.6600, Rs.3300)

2. A, B & C start a business each investing Rs.20,000. After 5 months A withdrew Rs.5000, B withdrew Rs.4000 and C invests Rs.6000 more. At the end of the year, a total profit of Rs.69,900 was recorded. Find the share of each. (Ans. Rs.20500, Rs.21200, Rs.28200)

3. A, B & C enter into partnership. A invests 3 times as much as B invests and B invests two-third of what C invests. At the end of the year, the profit earned is Rs.6600. What is the share of B? (Ans. Rs.1200)

4. A, B and C enter into a partnership by investing in the ratio of 3 ∶ 2 ∶ 4. After one year, B invests another Rs.2,70,000 and C, at the end of 2 years, also invests Rs.2,70,000. At the end of three years, profits are shared in the ratio of 3 ∶ 4 ∶ 5. Find the initial investment of each. (Ans. Rs.2,70,000, Rs.1,80,000, Rs.3,60,000)

5. A & B started business where A invested Rs.50000 and B invested Rs.60000. After one year A received 12% of the profit for managing the business and the remaining profit is divided according to their investment. If A received a total of Rs.13000, then find the amount earned as profit.

       A. Rs.20000                            B. Rs.22000

       C. Rs.24000                            D. Rs.25000

6. P & Q invested in a business. The profit earned was divided in the ratio 2 ∶ 3. If P invested Rs.40000, the amount invested by Q is 

       A. Rs.40000                            B. Rs.50000

       C. Rs.60000                            D. Rs.70000

7. A, B, C subscribe Rs.50,000 for a business. A subscribes Rs.4000 more than B and B Rs.5000 more than C. Out of a total profit of Rs.35,000, A receives

      A. Rs.8400                              B. Rs.11900

      C. Rs.13600                            D. Rs.14700

8. If 4 (P's Capital) = 6 (Q's Capital) = 10 (R's Capital), then out of the total profit of Rs.4650, R will receive 

        A. Rs.600                            B. Rs.700

        C. Rs.800                            D. Rs.900

9. Three partners shared the profit in a business in the ratio 5 ∶ 7 ∶ 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?

       A. 5 ∶ 7 ∶ 8                          B. 20 ∶ 49 ∶ 64

      C. 38 ∶ 28 ∶ 21                     D. None of these

10. A and B are partners in a business. A contributes 1/4 of the capital for 15 months and B received 2/3 of the profit. For how long B's money was used?

       A. 6 months                            B. 9 months

       C. 10 months                          D. 1 year

Previous Years Questions

1. Rahul invested 20% more than Bikash. Bikash invested 20% less than Kamal. If the total sum of their investment is Rs.8280, how much amount did Kamal invest? (Ans. Rs.3000)

2. A invested 20% more than B. B invested 25% less than C. If the total sum of their investment is Rs.2650, how much amount did B invest? (Rs.750)

3. Three friends A, B, C invested in a business in the ratio of 2 ∶ 3 ∶ 4. After 6 months C withdrew half of his capital. If the total profit earned for the year is Rs.110000, then find the profit earned by C. (Ans. Rs.41250)

4. K, L, M together started a business. K invested Rs.6700 for 3 months, L invested Rs.4000 for 5 months and M invested Rs.7900 for 4 months. If they get total profit of Rs.7170, find the share of K. (Ans.Rs.2010)

5. X and Y invested. They earned some profit which they divided in the ratio of 13 ∶ 17. If X invested Rs.65000, find the amount invested by Y. (Ans. Rs.85000)

6. Akash started a business with Rs.21000 and is joined afterwards by Boby with Rs.36000. After how many months did Boby join if the profits at the end of the year divided equally? (Ans.5)

7. X and Y invest Rs.5600 and Rs.6000 respectively in a business. If X doubles his capital after 6 months, in what ratio should X and Y  divide that year's profit? (Ans.14 ∶ 10)

8. A starts business with Rs.3500 and after 5 months, B joins with A as his partner. After a year, the profit is divided in the ratio of 2 ∶ 3. What is B's contribution in the capital? (Ans.Rs.9000)

9. A, B and C enter into a partnership in the ratio of 7/2 ∶ 4/3 ∶ 6/5. After 4 months, A increases his share by 50%. If the total profit at the end of one year be Rs.21600, then B's share in the profit is _______. (Ans.Rs.4000)

10. A, B and C rent a pasture. A puts 10 oxen for 7 months, B puts 12 oxen for 5 months and C puts 15 oxen for 3 months for grazing. If the rent of the pasture is Rs.175, how much must C pay as his share of rent? (Ans.Rs.45)

11. A and B are partners in a business. A contributes 1/4 of the capital for 15 months and B received 2/3 of the profit. For how long B's money was used? (Ans.10 months)

12. A & B enter into a partnership with their capitals in the ratio 7 : 9. At the end of 8 months,  A withdraws his capital. If they receive the profits  in ratio 8 : 9, find how long B's capital was used? (Ans.7 months)

13. An amount of Rs.2720 is divided among Bijaya, Naba & Deba such that Bijaya gets 2/3 of what Naba gets, while gets 1/4 of what Deba gets. How much does Naba get? (Ans.480)