PARTNERSHIP

IMPORTANT FACTS AND FORMULAE

1.

Partnership:
When two or more than two persons run a business jointly, they are called partners and the deal is known as

partnership.
2.

Ratio of Divisions of Gains:

I.
When investments of all the partners are for the same time, the gain or loss is distributed 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.

3.

Working and Sleeping Partners:

A partner who manages the the business is known as a working partner and the one who simply invests
the money is a sleeping partner.

Ex.1.
A, B and C started a business by investing Rs. 1,20,000, Rs. 1,35,000 and Rs. 1,50,000 respectively .Find the share of
each , out of an annual profit of Rs. 56,700.
Sol.

Ratio of shares of A, B and C = Ratio of their investments

= 120000 : 135000 : 150000 = 8 : 9 : 10.
8

As share = Rs.

56700 x

= Rs. 16800.
27

9
Bs share = Rs.

56700 x

= Rs. 18900.
27

10
Cs share = Rs.

56700 x

= Rs. 21000.
27

Ex.2.
Alfred started a business investing Rs. 45,000. After 3 months , Peter joined him with a capital of Rs. 60,000. After
another 6 months , Ronald joined them with a capital of Rs. 90,000. At the end of the year, they made a profit of Rs. 16,500 .
Find the share of each.
Sol.

Clearly, Alfred invested his capital for 12 months , Peter for 9 months and Ronald for 3 months .
So , ratio of their capitals = (45000 x 12) : (60000 x 9) : (90000 x 3)
= 540000 : 540000 : 270000 = 2 : 2 : 1.

2
:

Alfreds share = Rs.

16500 x

= Rs. 6600.
5

2
:

Peters share = Rs.

16500 x

= Rs. 6600.
5

1
:

Ronalds share = Rs.

16500 x

= Rs. 3300.
5

Ex.3.
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:

Sol.

Let the total profit be Rs. 100.

3
After paying to charity, A's share = Rs. 95 x

= Rs. 57.
5

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

100
If A's share Rs. 855, total profit =

x 855 = 1500.
57

Ex.4.
Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and
7 months respectively. What was the ratio of their investments?
Sol.

Let their investments be Rs. x for 14 months, Rs. y for 8 months and Rs. z for 7 months respectively.
Then, 14x : 8y : 7z = 5 : 7 : 8.
14x
Now,

49
98x = 40y

=
8y

x
20

112

=
7z

112x = 35z

z =

x : y : z = x :

16
x =

35

49

y =

14x
and,

x.
5

16
x :

20

x = 20 : 49 : 64.
5

Ex.5.
Three partners A, B and C invest Rs 1600, Rs. 1800 and Rs. 2300 respectively in business . How should they divide a
profit of Rs. 1938?
Sol.

The profit should be divided in the ratios of the capitals, i.e. in the ratio 16 : 18 :23.
Now, 16 + 18 + 23 = 57
16
As share =

of Rs. 1938 = Rs. 544

57
18

Bs share =

of Rs. 1938 = Rs. 612

57
23

Cs share =

of Rs. 1938 = Rs. 782

57

Ex.6.
A and B enter into a partnership for a year . A contributes Rs. 1500 and B Rs. 2000. After 4 months they admit C,
who contributes Rs. 2250. If B withdraw his contribution after 9 months , how would they share a profit of Rs. 900 at the end
of the year?
Sol.

As share : Bs share : Cs share

1500 x 12 : 2000 x 9 : 2250 x 8

15 x 12 : 20 x 9 : 22.5 x 8 = 180 : 180 : 180

= 1 : 1 : 1

900
Therefore , each of them gets Rs.

= Rs. 300.
3

Ex.7.
P and Q started a business investing Rs. 85,000 and Rs. 15,000 respectively. In what ratio the profit earned after 2
years be divided between P and Q respectively?
Sol.

P : Q = 85000 : 15000

= 85 : 15 = 17 : 3.

Ex.8.
A began a business with Rs. 85,000, He was joined afterwards by B with Rs. 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?
85000 x 12
Sol.

Suppose B joined for x months. Then,

42500 x X

85000 x 12
or X =

= 8.

42500 x 3

So, B joined for 8 months.

Ex.9.
A start business with Rs. 3500 and after 5 months, B joined with A as his partner. After a year , the profit is divided
in the ratio 2 : 3 .What is Bs contribution in the capital?
3500 x 12
Sol.

Let Bs capital be Rs. x. Then,

=
7x

14x = 126000

= 9000.

Ex.10. X and Y invested in a business. They earned some profit which they divided in the ratio of 2 : 3. If X invested Rs.
40,000, the amount invested by Y is:
40,000
Sol.

Suppose Y invested Rs. y. Then,

2
=

40000 x 3
or y =

= 60000.
2

Ex.11. A invested Rs . 76,000 in a business. After few months , B joined him with Rs. 57,000. At the end of the year, the
total profit was divided between them in the ratio 2 : 1. After how many months did B join?
Sol.

Suppose B joined after x months . Then Bs money was invested for (12 x) monthhs.

76000 x 12
:

2
=

57000 x(12 x)

912000

114(12 x) = 912 (12 x) = 8

= 114000 (12 x)

Hence , B joined after 4 months.

x = 4.

Ex.12. A, B, and C center into partnership . A invests 3 times as much as B invests and B invests two third of what C
invests. At the end of the year, the profit earned is Rs. 6600. What is the share of B?
Sol.

2
Let Cs capital = Rs. x. then , Bs capital = Rs.

x.
3

2
As capital = Rs.

3 x

= Rs. 2x.

2
:

Ratio of their capitals = 2x :

x : x = 6 : 2: 3.
3
2

Hence, Bs share = Rs.

6600 x

= Rs. 1200.
11

Ex.13. A began a business with Rs 450 and was joined afterwards by B with Rs. 300. When did B join if the profits at the
end of the year were divided in the ratio 2 : 1?

Sol.

Suppose B joined the business for x months.

450 x 12
Then, using the above formula , we have

1
=

300 x X

450 x 12
or, 300 x 2X = 450 x 12

: x =

= 9 months.
2 x 300

Therefore B joined after (12 9) = 3 months .

Ex.14. A and B enter into a partnership with their capitals in the ratio 7 : 9. At the end of 8 months , A withdraws his
capital . If they receive the profits in the ratio 8 : 9, find how long Bs capital was used.
7 x 8
Sol.

Suppose Bs capital was used for x months . Following the same rule, we have,

8
=

9 x X

7 x 8 x 9
or, x

= 7
8 x 9

Therefore, Bs capital was used for 7 months.

Ex.15. Anand and Deepak started a business investing Rs.22,500 and Rs. 35,000 respectively . Out of a total profit of Rs.
13,800, Deepak share is :
Sol.

Ratio of their shares = 22500 : 35000 = 9 : 14.

14
Deepaks share = Rs.

13800 x

= Rs. 8400.
23

Ex.16. Kamal started a business investing Rs. 9000 . After five months , Sammer joined with a capital of Rs. 8000. If at the
end of the year, they earn a profit of Rs. 6970, then what will be the share of sameer in the profit?

Sol.

Kamal : Sameer = (9000 x 12) : (8000 x 7)

Sameers share = Rs.

= 108 : 56 = 27 : 14.

14
6970 x

Rs. 2380.

41

Ex.17. Manick received Rs. 6000 as his share out of the total profit of Rs.9000 which he and Raunaq earned at the end of
the year . If manick invested Rs. 20,000 for 6 months , whereas Raunaq invested his amount for the whole year, what was the
amount invested by Raunaq ?
Sol.

Suppose Raunaq invested Rs. x. Then, Manick : Raunaq

120000
:

6000

(20000 x 6) : (X x 12)

120000
or X

=
12x

= 50000.

3000

24

Ex.18. A, B and C enter into partnership. A invests some money at the beginning , B invests double the amount after 6
months and C invests thrice the amount after 8 months . If the annual profit be Rs. 27,000, Cs share is :

Sol.

Let As investment be Rs. x.

Then, Ratio of capitals = (X x 12) : (2X x 6) : (3X x 4)

= 12X : 12X : 12X = 1 : 1 : 1.

1
:

Cs share = Rs.

27000 x

= Rs. 9000.
3

Ex.19.

A , B , C hired a car for Rs. 520 and used it for 7 , 8 and 11 hours respectively. Hire charges paid by B were :

Sol.

A : B : C = 7 : 8 : 11.

8
Hired charged paid by B

= Rs.

520 x

= Rs. 160.
26

Ex.20. Reena and Shaloo are partners in a business . Reena invests Rs. 35,000 for 8 months and Shaloo invests Rs. 42,000
for 10 months . Out of a profit of Rs. 31,570, Reenas share is :

Sol.

Ratio of their shares = (35000 x 8) : (42000 x 10) = 2 : 3.

2
Reenas share = Rs.

31570 x

Rs. 12628.

Ex.21. How should a profit of Rs. 450 be divided between two partners, one of whom has contributed Rs. 1200 for 5
months and the other Rs. 750 for 4 months ?

Sol.

The ratio of profit = 12 x 5 : 7.5 x 4 = 60 : 30

= 2 : 1

450

st

1 partner gets

x 2

= Rs.300

3
450

nd

2 partner gets

x1

= Rs. 150

3
Ex.22. A and B rent a pasture for 10 months ; and A puts in 90 oxen for 7 months . How many oxen can B put in for the
remaining 3 months , if he pays half as much as A?

As share
Sol.

90 x 7
=

B share

90 x 7
: X =

=
X x 3

= 105 oxen.
3 x 2

Ex.23. A , B and C invested capitals in the ratio 2 : 3 : 5; the timing of their investments being in the ratio 4 : 5 : 6.
In what ratio would their profit be distributed ?
Sol.

We should know that if the three investments be in the ratio a : b : c and the duration for their investments be in
the ratio x : y : z, then the profit would be distributed in the ratio ax : by : cz.
Thus , following the same rule, the required ratio
= 2 x 4 : 3 x 5 : 5 x 6 = 8 : 15 : 30

Ex.24. A and B enter into a partnership for a year. A contributes Rs. 1500 and B Rs. 2000. After 4 months they admit C,
who contributes Rs. 2250. If B withdraws his contribution after 9 months, how would they share a profit of Rs. 900 at the end
of the year?

Sol.

As share : Bs share : Cs share

= 1500 x 12 : 2000 x 9 : 2250 x 8
= 15 x 12 : 20 x 9 : 22.5 x 8 = 180 : 180 : 180 =

1 : 1 : 1

900
Therefore , each of them gets Rs

= Rs. 300.
3

Ex.25. A , B and C are partners. A receives 2/5 of the profit and B and C share the remaining profit equally . As income is
increased by Rs. 220 when the profit rises from 8% to 10% .Find the capitals invested by A , B, and C.

Sol.

For As share: (10% - 8%) = Rs. 220

100%

220
=

x 100 = Rs.11000
2

As capital = Rs. 11000

2
for Bs and Cs share:

= 11000
5

3
:
5

11000
=

x 3

Rs. 16500.

Bs and Cs capital are Rs. 8250 each.

Ex.26. A , B , C enter into a partnership investing Rs. 35,000,Rs.45,000,and Rs.55,000 respectively . The respective shares of
A , B , C in an annual profit of Rs. 40,500 are :

Sol.

A : B : C = 35000 : 45000 : 55000

= 7 : 9 : 11.

7
As share = Rs.

40500 x

Rs. 10500.

27

9
Bs share = Rs.

40500 x

= Rs.

13500.

27

11
Cs share = Rs.

40500 x

= Rs.

16500.

27

Ex.27. Simran started a software business by investing Rs. 50,000. After six months , Nanda joined her with a capital of Rs.
80,000. After 3 years, they earned a profit of Rs.24,500.What was simrans share in the profit?

Sol.

Simran : Nanda = (50000 x 36) : (80000 x 30) = 3 : 4.

3
Simrans share = Rs.

24500 x

= Rs.
7

10500.

Ex.28. A and B started a business in partnership investing Rs. 20,000 and Rs. 15,000 respectively. After six months, C joined
them with Rs. 20,000. What will be B, s share in the total profit of Rs. 25,000. Earned at the end of 2 years from the starting
of the business?

Sol.

A : B : C =

Bs share Rs.

(20000 x 24) : (15000 x 24) : (20000 x 18) = 4 : 3 : 3.

3
25000 x

= Rs. 7500.
10

Ex.29. A , B , C subscribe Rs . 50,000 for a business . A subscribes Rs. 4000 more than B and B Rs. 5000 more than C . Out of
a total profit of Rs. 35,000, A receives :

Sol.

Let C = x. Then, B = x + 5000 and A = x + 5000 + 4000

So, x + x + 5000 + x + 9000 = 50000

x + 9000.

3x = 36000

x = 12000.

A : B : C = 21000 : 17000 : 12000 = 21 : 17 : 12

21
:

As share = Rs.

35000 x

= Rs. 14,700.
50

Ex.30. A , B and C jointly thought of engaging themselves in a business venture . It was agreed that A would invest Rs.
6500 for 6 months , B, Rs. 8400 for 5 months and C, Rs.10,000 for 3 months . A wants to be the working member for which he
was to receive 5 % of the profits . The profit earned was Rs. 7400. Calculate the share of B in the profit.

Sol.

For managing, A receives = 5% of Rs. 7400 = Rs. 370.

Balance = Rs. (7400 - 370)

= Rs. 7030.

Ratio of their investments = (6500 x 6) : (8400 x 5) : (10000 x 3)

=

39000 : 42000 : 30000 = 13 : 14 : 10.

14
Bs share = Rs.

7030 x

= Rs. 2660.
37