**Partnership Solved Examples - Page 2**

** Partnership Important Questions - Page 3**

When two or more than two persons run a business jointly. They are called partners and the deal is known as partnership.Â Partnership is of two kinds : (i) Simple and (ii) Compound.

* Simple Partnership* : If the capitals of the partners are invested for the same period the partnership is called simple.

**Rule**. When investment of all the partners are for the same time, the profit or loss is divided among them in the ratio of their investments.

* Compound Partnership* : If the capitals of the partners are invested for different lengths of time, the partnership is called compound.

**Rule**. When investment are for different times then equivalent capitals are calculated for a unit of time by multiplying the capital with the number of units of time. The profit or loss is now divided in the ratio of these capitals.

Note I. If A and B invested their capitals for different length of time, then Images

Note II. A partner who manages the business is called a working partner and the one who simply invests the money is called a sleeping partner.

Note III. In every examination the questions are generally set on compound partnership. But such questions are first converted into simple partnership and then solved.

## Partnership Important Examples

* Example 1*. A and B started a business in partnership with Rs.50,000 and Rs.60,000 respectively. A is also a working partner and gets 10% of the total profit for looking after the business. How much is the share or B less than the share of A in the profit of Rs.55,000 ?

* Solution *: Ratio of two Capital of A and B

= 50,000 : 60,000

= 5 : 6

A gets 10% of the total profit for looking after the business.

Income received by A for looking after the business.

= 10% Rs.55, 000

= Rs. 5500

Rest of the profit

= 55,000 â€“ 5500

= Rs. 49500

Now, from this amounts of profit A and B will get their shares of profit in the ratio of their invested capitals.

Profit received by

A =

= Rs.22,500

Total share of

A = 22500 + 5500

= Rs.28,000

Again share of

B =

= 27000

Hence share of B is Rs 1,000 = [28,000-27,000] less than the share of A.

**Short Method :**

Since A gets 10% of the total profit for looking after the business therefore, B will get the share of profit from 90% of the total point.

Share of profit B gets

=

= Rs.27,000

Share of income A gets

= 55,000 â€“ 27,000

= Rs.28,000

Required difference

= Rs. (28,000 â€“ 27,000)

= 1000.

* Example 2*. The partners A, B, C start a business. Twice the investment of A is equal to thrice the capital of B and the capital of B is four times the capital of C. Find the share of each out of a profit of Rs. 2,97, 000.

* Solution :* Let Câ€™s capital = Rs. x then Bâ€™s capital = Rs. 4x

Now, 2 (A,s capital)= 3 (Bâ€™s capital)=

Aâ€™s capital= = 6x

So, ratio of share of A, B and C = 6x : 4x : x = 6 : 4 : 1.

Aâ€™s share =Rs.

= Rs.1,62,000

Bâ€™s share of =Rs.

= Rs.108000

and Câ€™s share =Rs.

= Rs.27000.

* Example 3:* A began a business with Rs. 2100 and is joined afterwards by B with Rs. 3600. After how many months did B join, if the profits at the end of the year are divided equally ?

* Solution *: Suppose B joines after x months. Then Bâ€™s money remained invested for (12-x) months.

=

3600 x = 43200-25200

x = 18000/3600 = 5

So, B, joined after 5 months.

* Example 4:* Dilip and Manohar started a business by investing Rs. 1,00,000 and Rs. 1,50,000 respectively. Find the share of each out of profit of Rs. 24,000.

* Solution *: Ratio of share of Dilip and manohar

= 100000 : 150000 = 2 : 3

Dilipâ€™s share

= Rs.

= Rs.9600

Manoharâ€™s share

= Rs.

= Rs.14400

* Example 5*. Sanjay and Raju started a business and invested Rs.20,000 and Rs.25,000 respectively. After 4 months, Raju left Naresh jointed by investing Rs. 15,000. At the end of the year there was a profit of Rs. 4,600. What is the share of Naresh ?

* Solution *: Ratio of share of Sanjay, Raju and Naresh

=

= 12 : 5 : 6:

share of Naresh

= Rs. = Rs.1200

## Partnership Questions from Previous Year Exam

Partnership QUESTIONS..

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