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[Aptitude] Partnership and profit-sharing made Easy for

CSAT IBPS CAT
Posted By On 03/05/2012 @ 2:54 pm In Aptitude | 17 Comments
1. Case 1: Two partners join @same time
o Step 1: Fill up the table
o Step 2: Find Ratio of Actual investment
o Step 3: Componendo on Total Profit
2. Case 2: Two Partners join @Different Time
o Step 1: Fill up table
o Step 2: Find Ratio of Actual investment
o Step 3: Apply Componendo on Total Profit
3. Case 3: Three partners join @same time
o Step 1: Fill up table
o Step 2: Ratio of Actual investment
o Step 3: Componendo
4. Case 4: All In One
o Step 1: Fill up the table
o Step 2: Ratio of actual investment
o Step 3: Componendo for Mehtas share

Case 1: Two partners join @same time

Jethalal Ghada and Roshansingh Sodhi decided to start an ice-cream
parlor in partnership.
Their individual investment is rupees 2,70,000 and 2,10,000

respectively.
At the end of first year, they make profit of Rs.80,000. Find Jethalals
share in this profit.

Step 1: Fill up the table

Make a table
Name

Initial Investment

Months

Actual Investment=Initial x months

Jethalal

2.7lakh

12

2.7 x 12

Sodhi

2.1lakh

12

2.1 x 12

Step 2: Find Ratio of Actual investment

Actual Investment Ratio of Jethalal : Sodhi
= (2.7 x 12) / (2.1 x 12)
=9:7
Therefore, whatever profit is made, they must share it in the ratio of their
investment =9:7

Step 3: Componendo on Total Profit

See this image for calculation

This means, whatever total profit is made, Jethalal should get 9/16 th part
of that total profit.
Given: they made profit of Rs.80,000
Hence Jethalals share in profit
=(9/16) multiplied with 80,000
=Rs.45000
Corporally to that, Sodhis share in profit
= Total profit Minus Jethas share in profit
=80000-45000
=35000
Alternatively:Sodhis share in profit

Therefore Sodhis share in profit = 7/16th of Total profit

=(7/16) x 80000
=35000
Time to complicate the case.

Case 2: Two Partners join @Different Time

Jethalal starts an Ice cream parlour with initial investment of Rs.2.7
lakhs.
After 3 months, Sodhi joins him with investment of Rs.2.1 lakh.
At the end of first year, they make profit of Rs.95,000.
Find out Jethalals share in this profit?
Answer:
Jethalal starts the business and Sodhi Joins after 3 months.
It means Sodhi stayed in the business 12 minus 3 =9 months.
Fill up the table

Step 1: Fill up table

Name

Initial Investment

Months

Actual Investment

Jethalal

2.7lakh

12

=2.7 x 12

Sodhi

2.1lakh

=2.1 x 9

Step 2: Find Ratio of Actual investment

Actual Investment Ratio of Jetha:Sodhi
= (2.7 x 12) / (2.1 x 9)
=12/7

Step 3: Apply Componendo on Total Profit

Profit share of (Jetha:Total)
= 12/(12+7)
=12/19th part of total
Given: they made profit of Rs.95000
Jethalals share in profit
=(12/19) x 95000
=Rs.60000
And Sodhis share in profit
= 95000 minus 60000
=35,000

Case 3: Three partners join @same time

Jethalal, Sodhi and Mehta start an ice cream parlor with initial
investment of Rs. 2.1lakhs, 2.7lakhs and 1.5 lakhs respectively. At the
end of one year, they make profit of Rs.1.05 lakhs. Find the Share of
Mehta in this profit.
The method remain the same.

Step 1: Fill up table

Name

Initial Investment

Months

Jethalal

2.7 lakh

12

Sodhi

2.1 lakh

12

Mehta

1.5 lakh

12

The Months column isnt really important, unless the partners are joining
at different time (as happened in case#2)
Because x12 months will cut each other when we take ratio since theyre
common for each partner.
So we can simply ignore that column and concentrate on

Step 2: Ratio of Actual investment

Jetha : Sodhi : Mehta
= 2.7 : 2.1 : 1.5
If you multiply each with 10
=27:21:15

If you divide each number with 3

=9:7:5

Step 3: Componendo
Mehtas share
= 5 / (9+7+5)
=(5/21) x 1,05,000
=Rs.25000
Alternative: without simplifying the ratio
Since all partners joined @ same time, the months arent important. We
can directly use the money invested by them.
Mehtas share ratio
= 1.5 lakh / (1.5 lakh + 2.1 lakh + 2.7 lakh)
=1.5/6.3
Mehtas share in total profit
=(1.5/6.3) x 105000
=Rs.25000
Now lets try a complicated problem that uses all of above cases.

Case 4: All In One

Jethalal starts an icecream parlour with initial investment of 3 lakhs.
3 months later Sodhi joins him with investment of Rs.2 lakhs and stays till the end.
Later on Mehta also joins them and contributes Rs.1 lakh and stays till the end.
After one year, they make total profit of Rs.28,000 and Mehta is given Rs.1000 out of
this profit.
Find out when did Mehta join the business?

Jetha started the business. Sodhi joined 3 months after Jetha.

Hence Sodhi stayed in business for 12 minus 3 = 9 months.
Assume Mehta stayed in business for m months.

Step 1: Fill up the table

Name

Initial Investment

Months

Actual investment
=Initial investment x Months

Jethalal

3 lakhs

12

3 x 12 =36

Sodhi

2 lakhs

2 x 9 =18

Mehta

1 lakh

1 x M=M

Step 2: Ratio of actual investment

As you ca see in the last column of ^that table.
Jetha : Sodhi : Mehta =36:18:M

Step 3: Componendo for Mehtas share

=M / (36+18+M)
=M/(54+M)th part of Total profit (Rs.28,000)
But it is given: Mehta was paid Rs. 1000 out of total profit.

28M=1M+54
28M-1M=54
27M=54
M=54/27
M=2 months.
It means Mehta stayed in the business for 2 Months.
It means he joined the gang 10 months after Jethalal had started the
business (10+2=12months)
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Mrunal.org/aptitude

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