UNIT - 2

Partnership
INTRODUCTION:
Partnership:
When two or more than two persons run a business jointly, they
are called partners and the deal is known as partnership

Ratio of Divisions of Gains:

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 and 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.
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 gain or loss is divided in the ratio of these 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.
Working and Sleeping Partners:
A partner who manages the the business is
known as a working partner and the one who
simply invests the money is a sleeping partner.
SAMPLE PROBLEMS:
1. A, B and C invested Rs.6300, Rs.4200 and Rs.10500 respectively, in
a partnership business. Find the share of A in profit of Rs.12100
after a year?

A. Rs.3630 B. Rs.2840 C. Rs.3200 D. Rs.5600

EXPLANATION:
6300:4200:10500

3:2:5

3/10 * 12100 = 3630

ANSWER: A
2. A, B and C enter into partnership. A subscribes 1/3 of the
capital B is 1/4 and C is 1/6. How much share did A get in a
profit of Rs.2700?

A. Rs.1200 B. Rs.800 C. Rs.1500 D. Rs.900

EXPLANATION:
4:3:2

Total profit - 2700

9 = 2700
4= ?

ANSWER: A
3. If Rs.3250 be divided among Ram, Shyam and Mohan in
the ratio of 1/2:1/3:1/4 then the share of each are?

A. Ram = Rs.1500, Shyam = Rs.1000, Mohan = Rs.750

B. Ram = Rs.2500, Shyam = Rs.500, Mohan = Rs.250
C. Ram = Rs.1200, Shyam = Rs.1300, Mohan = Rs.750
D. None
EXPLANATION:
1/2:1/3:1/4 = 6:4:3

Ram = 6/13 * 3250 = 1500

Shyam = 4/13 * 3250 = 1000

Mohan = 3/13 * 3250 = 750

ANSWER: A
4. A and B entered into a partnership investing Rs.25000 and
Rs.30000 respectively. After 4 months C also joined the
business with an investment of Rs.35000. What is the share of
C in an annual profit of Rs.47000?

A. Rs.18000 B. Rs.15000 C. Rs.17000 D. Rs.14000

EXPLANATION:
25*12: 30*12: 35*8

15:18:14

14/47 * 47000 = 14000

ANSWER: D
5. A and B enter into partnership with capital as 7:9. At the end
of 8 months, A withdraws. If they receive the profits in the
ratio of 8:9 find how long B's capital was used?

A. 6 months B. 8 months C. 10 months D. 7 months

EXPLANATION:
7 * 8 : 9 * X = 8:9

56 = 8
63 = 9

So, X = 7

ANSWER: D
6. A and B began business with Rs.3000 and Rs.4000 after 8
months, A withdraws Rs.1000 and B advances Rs.1000 more.
At the end of the year, their profits amounted to Rs.630 find
the share of A.

A. Rs.240 B. Rs.350 C. Rs.340 D. Rs.390

EXPLANATION:

(3*8 + 2*4):(4*8 + 5*4)

8:13

8/21 * 630 = 240

ANSWER: A
7. A starts business with a capital of Rs.1200 B and C join with some
investments after 3 and 6 months respectively. If the end of a year, the
profit is divided in the ratio 2:3:5 respectively. What is B's investment in
the business?

A. Rs.2400 B. Rs.1800 C. Rs.3600 D. Rs.6000

EXPLANATION:
1200 * 12: x * 9 = 2:3

2 = 14400
3 = 21600

21600 / 9 = 2400

x = 2400

ANSWER: A
8. A, B, C together started a business. A invested Rs.6000 for 5
months B invested Rs.3600 for 6 months and C Rs.7500 for 3
months. If they get a total profit of Rs.7410. Find the share of
A?

A. Rs.3750 B. Rs.3000 C. Rs.3200 D. Rs.2160

EXPLANATION:
60*5:36*6:75*3

100: 72: 75

100/247 * 7410 = 3000

ANSWER: B
9. If 6 (A's capital) = 8 (B's capital) = 10 (C's capital).
Then the ratio of their capitals is:

A. 3:4:5 B. 12:15:20 C. 20:15:12 D. 6:8:10

ANSWER: A
10. A, B and C are partners in a business. Their capitals are respectively,
Rs.5000, Rs.6000 and Rs.4000. A gets 30% of the total profit for
managing the business. The remaining profit is divided among three in
the ratio of their capitals. In the end of the year, the profit of A is Rs.200
more than the sum of the profits of B and C. Find the total profit.

A. Rs.4500 B. Rs.5200 C. Rs.1800 D. Rs.3000

EXPLANATION:
A:B:C = 5:6:4
Let the total profit = 100 - 30 = 70
5/15 * 70 = 70/3
A share = 70/3 + 30 = 160/3
B + C share = 100 - 160/3 = 140/3
A-(B+C) = 160/3 - 140/3 = 20/3
20/3 ---- 200
100 ---- ? => 3000

ANSWER: D
11. Three persons invested Rs.9000 in a joint business. The second
person invested Rs.1000 more than the first and the third Rs.1000 more
than second. After two years, they gained Rs.5400. How much third
person will get?

A. Rs.2400 B. Rs.3600 C. Rs.2850 D. Rs.2000

EXPLANATION:
First persons investment = x
Second persons investment = x + 1000
Third persons investments = x + 2000
x + x + 1000 + x + 2000 = 9000
3x = 6000
x = 2000
Ratio = 2000 : 3000 : 4000
2:3:4
4/9 * 54000 = 2400

ANSWER: A
12. A and B invests Rs.3000 and Rs.4000 respectively in a business. If
A doubles his capital after 6 months. In what ratio should A and B
divide that year's profit?

A. 9:10 B. 9:8 C. 3:4 D. 39:49

EXPLANATION:
(3*6 + 6*6): (4*12)

54:48 => 9:8

ANSWER: B
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