# 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:

Vishal and Raghu jointly started a business. Vishal invested three times as Raghu did and invested his money for double time as compared to Raghu. Raghu earned Rs. 4000. If the gain is proportional to the money invested and the time for which the money is invested then the total gain was  ?

 A) Rs. 28,000 B) Rs. 18,000 C) Rs. 14,000 D) Rs. 8,000

Explanation:

Investments ratio is = 3:1
Time period ratio is = 2:1

As they are proportional to gain

------
Gain ratio of Vishal and raghu = 6:1

But given Raghu got Rs. 4000,

=? 1 ----- 4000
7 -----    ?

=> Rs.28,000

The total gain = Rs.28,000

4 4557
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

Explanation:

From the given data,

Ratio of capital = 12000 : 14400 = 5 : 6

Required Difference =

7 4509
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

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

12 4394
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

Explanation:

Let O's share = Rs. P

=> N's share =

M's share =

14 4297
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

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

8 4077
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

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.

8 3923
Q:

A and B entered in a business by making investment of Rs. 4000 & Rs. 5500 respectively. After six months A & B withdrew Rs. 1000 and Rs. 1500 respectively and C joined them with capital of Rs. 4x. If after one year and three months C received Rs. 2250 as profit share out of total profit of Rs. 12250, then find investment of C?

 A)  Rs. 3600 B)  Rs. 3200 C)  Rs. 4400 D)  Rs. 3000

Explanation:

Investment ratio of A, B & C = (4000 ×6+3000×9):(5500 ×6+4000×9):4

4 3862
Q:

K and L start a business jointly. L invests Rs.16000 for 8 months and L remains in the business for 4 months. Out of the total profit B claims 2/7th share. How much money is contributed by B  ?

 A) Rs. 9040 B) Rs. 10,400 C) Rs. 12,800 D) Rs. 6350