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 invest Rs. 1,16,000 & 1,44,000 respectively. B invests for 6 months. At the end of the year, B’s share is Rs. 9000, find the overall profit?

A) Rs. 23,500 B) Rs. 19,780
C) Rs. 21,700 D) Rs. 20,050
 
Answer & Explanation Answer: A) Rs. 23,500

Explanation:

Given A & B in partnership

A Invests 116000 for 12 months 

=> A's share = 116000 x 12 = 13,92,000

B Invests for 6 months

=> B's share = 144000 x 6 = 8,64,000

Their Ratio = 1392 : 864 = 29 : 18

Let the Annual profit = P

Given B's share = Rs. 9000

=> 18/47 x P = 9000

=> P = 9000 x 47/18

=> P = 23,500

Hence, Overall profit = P = Rs. 23,500

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12 2587
Q:

A sum of Rs. 4,300 is distributed among M, N and O, such that M receives 25% more than N and N receives 25% less than O. What is O’s share in the amount?

A) 1564 B) 1600
C) 1632 D) 1714
 
Answer & Explanation Answer: B) 1600

Explanation:

Let O's share = Rs. P

=> N's share = 75100 x P = 3P4

M's share = 54 x 3P4 = 15P16

15P16 + 3P4 + P = 4300=> P = 4300 x 1643 = 1600 

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14 2412
Q:

What is the difference in the shares of profit between P and Q in a joint business at the end of one year ?

a. P Invested Rs. 80,000 and withdrew Rs. 20,000 after 6 months.

b. Q joined four months after the start of business.

c. Q's amount was 80% of P's amount during the last six months.

A) Only a B) Only c
C) Both a & b D) Data is not sufficient
 
Answer & Explanation Answer: D) Data is not sufficient

Explanation:

a. P's investment = (80000 x 6 + 60000 x 6) = 840000 for 1 month.

b & c. Q's investment = 80% of Rs. 60000 for 8 months.

= Rs.(48000 x 8) for 1 month = 384000 for 1 month

P : Q = 840000 : 384000 = 35 : 16.

But, the total profit is not given, so data is inadequate.

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2 2039
Q:

Rohith started a business by investing Rs. 3600. After somedays, Puneeth joined him by investing Rs. 2400. At the end of one year, the profit was divided in the ratio 2 : 1. After how many months did Puneeth join the business?

A) 2 months B) 2.5 months
C) 3 months D) 3.5 months
 
Answer & Explanation Answer: C) 3 months

Explanation:

Ratio of profit of Rohith and Puneeth = 3600 x 12 : 2400 x P

= 3600 x 12/2400P = 2/1

=> P = 9

So, Puneeth joined the business after (12 - P) = 12 - 9 = 3 months.

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11 2030
Q:

Two persons K and L enter into a business by investing their sum in the ratio of 7 : 9. After 7 months, L leaves the business. After eleven month, if total profit is Rs. 2460, what is the profit share of L (in Rs)?

A) Rs, 1109 B) Rs. 1107
C) Rs. 1111 D) Rs. 1113
 
Answer & Explanation Answer: B) Rs. 1107

Explanation:

From the given data,

K's profit : L's profit = 7x x 11 : 9x x 7

= 11:9

Therefore, L's profit = 9 x 2460/20 =  Rs. 1107

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8 1652
Q:

A and B started a business after investing Rs. 12,000 and Rs. 14,400 respectively. At the end of the year B gets 12% of the total profit as management fees and the rest amount is distributed between both the partners in the ratio of their investments. If total annual profit is Rs. 7,500, then find the difference between their profits.

A) Rs. 1250 B) Rs. 600
C) Rs. 900 D) Rs. 1500
 
Answer & Explanation Answer: D) Rs. 1500

Explanation:

From the given data,

Ratio of capital = 12000 : 14400 = 5 : 6

Required Difference = 

6 - 56 + 5 88100 x 7500 + 12100 x 7500= 111 x 88 x 75  + 12 x 75= 600 + 900= 1500

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6 1451
Q:

Dileep started a business with a capital of Rs. 8000. After six months, Narender joined him with some investment. If at the end of the year each of them gets equal amount as profit, how much did Narender invest in the business?

A) 24000 B) 16000
C) 12000 D) 32000
 
Answer & Explanation Answer: B) 16000

Explanation:

Given Dileep and Narender started a business.

Dileep invested 8000 for 12 months

Let Narender invested 'p' for 6 months

At the end of the year, their profit ratio is 1 : 1.

Hence,

8000 x 12 : p x 6

p : 16000

p/16000 = 1/1

=> p = 16,000

 

Hence, Narender invested amount is Rs. 16,000.

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8 1364
Q:

Rs. 2018 are to be divided among P, Q and R in such a way that if P gets Rs. 5 then Q must get Rs. 12 and if Q gets Rs. 4 then R must get Rs. 5.50. The share of R will exceed that of Q by

A) Rs. 127 B) Rs. 271
C) Rs. 721 D) Rs. 217
 
Answer & Explanation Answer: B) Rs. 271

Explanation:

ATQ,

P : Q = 5 : 12 = 10 : 24

Q : R = 4 : 5.5 = 24 : 33

P:Q:R = 10 : 24 : 33

Sum of the ratios = 10 + 24 + 33 = 67

Difference between the share of R & Q

= (33-24/67 x 2018)

= 9/67 x 2018

= Rs. 271.

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7 1323