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
 
Answer & Explanation Answer: D) 5 : 6 : 10

Explanation:

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

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

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60 14711
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
 
Answer & Explanation Answer: C) 1500

Explanation:

Let the total profit be Rs. 100.

After paying to charity, A's share  =  = Rs. 57.

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

If A's share is Rs. 855, total profit  =  = 1500.

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45 12523
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
 
Answer & Explanation Answer: C) 10 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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38 10966
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
 
Answer & Explanation Answer: D) 8 months

Explanation:

Suppose B joined for x months . Then,  ( 85000 * 12 )/(42500 * x) = 3. or x = (85000 * 12) / (42500 * 3) = 8.

So, B joined for 8 months.

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28 6533
Q:

Two partners investede Rs. 1250 and Rs. 850 respectively in a business. They distributed 60% of the profit equally and decide to distribute the remaining 40% as the ratio of their capitals. If one partner received Rs. 30 more than the other, find the total profit?

Answer

Let the total profit be Rs.x


60% of the profit = \inline \frac{60}{100}\times x=Rs.\frac{3x}{5}


from  this part of the profit each gets = Rs.\inline \frac{3x}{10}


40% of the profit = \inline \frac{40}{100}\times x=Rs.\frac{2x}{5}


Now, this amount of Rs.\inline \frac{2x}{5} has been divided in the ratio of capitals 1250 : 850 = 25 :17


\inline \therefore Share on first capital = \inline (\frac{2x}{5}\times \frac{25}{42})=Rs.\frac{5x}{21}


Share on second capital = \inline (\frac{2x}{5}\times \frac{17}{42})=Rs.\frac{17x}{105}


Total money received by 1st investor = \inline [\frac{3x}{10}+\frac{5x}{21}]= Rs.\frac{113x}{210}


Total money received by 2nd investor = \inline [\frac{113x}{210}+\frac{97x}{210}]=Rs.\frac{97x}{210}


\inline \therefore x = 393.75


Hence total profit = Rs. 393.75

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