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PARTNERSHIP |
Partnership : Partnership is an association of two or more parties, they put money for business.
Simple Partnership: Simple partnership is one in which the capitals of the partners are invested for the same time. The profit or losses are divided among the partners in the ratio of their investments.
Compound Partnership: Compound Partnership is one which the capitals of the partners are invested for different periods. In such cases equivalent capitals are calculated for a unit time by multiplying the capital with the number of units of time. The profits or losses are then divided in the ratio of these equivalent capitals. Tus the ratio of profits is directly proportional to both capital invested as time.
Working partner: A partner who participates in the working and manages the business is called a Working Partner.
Sleeping Partner: A partner who only invests capital but does not participate in the working of the business is called a Sleeping Partner.
Division of Profit and Loss:
1. Rule : When investment of all partners are for the same time, the loss or profit is distributed among partners in the ratio of investment.
P’s share of profit : Q’s share profit = a : b 2.Rule : When investments are for different time period, then profit ratio is calculated as capital multiplied by length of investment Ex. P’s share of profit : Q’s share profit = a* t1 : b* t2
Questions with solutions Level-I
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1. A, B and C enter into a partnership. They invest Rs. 40,000, Rs. 80,000 and Rs. 1,20,000 respectively. At the end of the first year, B withdrawns Rs. 40,000, while at the end of the second year, C withdraws Rs. 80,000. In what ratio will the profit be shared at the end of 3 years ?
Solution: A : B : C = (40,000 X 36) : (80,000 X 12 + 40,000 X 24) : (120,000 X 24 + 40,000 X 12) = 3: 4: 16
2. 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 ?
Solution : A : B : C = 35000 : 45000 : 55000 = 7 : 9 : 11.
A’s share = Rs (40500 x 7/27) = Rs. 10500
B’s share = Rs.(40500× 9/27) = Rs. 13500
C’s share = Rs.(40500×11/27)= Rs. 16500
3. In a business, Lucky invests Rs. 35,000 for 8 months and manju invests Rs 42,000 for 10 months. Out of a profit of Rs. 31,570. Manju’s share is 😕
Solution : lucky: Manju = (35000 X 8) : (42,000 X 10) = 2:3
Manju’s share = Rs.3/5×31570 = Rs. 18,942
4. Amar started a business investing Rs. 70,000. Ramki joined him after six months with an amount of Rs. 1,05,000 and Sagar joined them with Rs. 1.4 lakhs after another six months. The amount of profit earned should be distributed in what ratio among Aman, Rakhi and Sagar respectively, 3 years after Aman started the business ?
Solution: Amar : Ramki : Sagar =
(70000 X 36) : (105000 X 30) : (140000 X24) = 12 : 15 : 16.
5 . A begins a business with Rs 450 and is joined afterwards by B with Rs 300. After how many months does B join if the profits at the end of the year is divided in the ratio 2 : 1?
Solution.-.(B) Suppose B joins for x months.
Then, 450 ?12 = 2
300 ? x 1
x =450× 6
300
x= 9 months
?B joins after (12 – 9) = 3 months.
6. Shekhar started a business investing Rs. 25,000 in 1999. In 2000, he invested an additional amount of Rs. 10,000 and Rajeev joined him with an amount of Rs. 35,000. In 2001, Shekhar invested another additional amount of Rs. 10,000 and Jatin joined them with an amount of Rs. 35,000. What will be Rajeev’s share in the profit of Rs. 1,50,000 earned at the end of 3 years from the start of the business in 1999?.
Solution : Shekhar : Rajeev : Jatin =
(25000 X 12 + 35000 X 12 + 45000 X 12) : (35000 X 24) : (35000 X 12)
B’s share = Rs.
: 
: 
. After 4 months, A increases his share 50%. If the total profit at the end of one year be Rs. 21,600, then B’s share in the profit is:
A : B : C =
3
A’s share = Rs.
98
112
14
of his capital and B withdrew 
of his capital. The gain at the end of 10 months was Rs. 760. A’s share in this profit is:
A’s share = Rs.
C’s rent = Rs.
B’s share = Rs.
