# Partnership Questions

FACTS  AND  FORMULAE  FOR  PARTNERSHIP  PROBLEMS

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 Division of Gains:

(i) When investments of all the partners are for the same time, the gain or loss is distributed a 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.

(ii) 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 business is known as a working partner and the one who simply invests the money is a sleeping partner.

Q:

A, B, C started a business with their investments in the ratio 1:3 :5. After 4 months, A invested the same amount as before and B as well as C withdrew half of their investments. The ratio of their profits at the end of the year is :

 A) 1 : 2 : 3 B) 3 : 4 : 15 C) 3 : 5 : 10 D) 5 : 6 : 10

Explanation:

Let their initial investments be x, 3x and 5x respectively. Then,

$\inline \fn_jvn A:B:C=(x\times 4+2x\times 8):(3x\times 4+\frac{3x}{2}\times 8):(5x\times 4+\frac{5x}{2}\times 8)$

20x : 24x : 40x = 5 : 6 : 10

68 19197
Q:

A and B invest in a business in the ratio 3 : 2. If 5% of the total profit goes to charity and A's share is Rs. 855, the total profit is :

 A) 500 B) 1000 C) 1500 D) 2000

Explanation:

Let the total profit be Rs. 100.

After paying to charity, A's share  = $\inline (95\times \frac{3}{5})$ = Rs. 57.

If A's share is Rs. 57, total profit = Rs. 100.

If A's share is Rs. 855, total profit  = $\inline (\frac{100}{57}\times 855)$ = 1500.

52 17759
Q:

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) 3 months B) 6 months C) 10 months D) 12 months

Explanation:

Let the total profit be Rs. z. Then,

B's share = Rs. 2z/3,  A's share = Rs. ( z - 2z/3 ) = Rs. z/3.

A : B = z/3 : 2z/3 = 1:2

Let the total capital be Rs, X and suppose B's money was used for x months. Then.

(1(x) / 4 * 15) / (3x) / 4 * y) = 1/2 <=> y = (15 * 2 / 3) = 10 .

Thus, B's money was used for 10 months.

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Q:

A, B and C enter into a partnership and their shares are in the ratio 1/2 : 1/3 : 1/4. After 2 months, A withdraws half of his capital and after 10 months, a profit of Rs. 378 is divided among them. What is B's share ?

 A) 144 B) 169 C) 225 D) 339

Explanation:

Ratio of initial investments = 1/2 : 1/3 : 1/4 = 6 : 4 : 3.

Let their initial investments be 6x, 2x and 3x respectively.

A : B : C = (6x * 2 + 3x * 10) : (4x * 12) : (3x * 12) = 42 : 48 : 36 = 7 : 8 : 6.

B's share =  Rs. (378 * 8/21) = Rs. 144.

10 10213
Q:

A began a business with Rs. 85,000. He was joined afterwards by B with Ks. 42,500. For how much period does B join, if the profits at the end of the year are divided in the ratio of 3 : 1 ?

 A) 4 months B) 5 months C) 6 months D) 8 months