Aptitude Partnership Tutorials & Tricks

Partnership Tutorials & Tricks

Introduction

When two or more than two persons run a business jointly, they are called partnersand the deal is known as partnership

Formula for finding out Partnership.

1. Partnership : Partnership is an association of two or more parties, they put money for business.

2.Ratio of Divisions of Gains Ist: 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.

3.Ratio of Divisions of Gains IInd: 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.

4.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.

Sample Example

Ex

Three partners A, B and C invested Rs. 1000, Rs. 1200 and Rs. 1500 respectively in business for one year. How should they divide a profit of Rs. 1295 ?

A

 As investment period is same so, profit should be divided in ratio of capitals as, 10 : 12 : 15, also 10 + 12 + 15 = 37 A's share = (10/37)*1295 = Rs.350 B's share = (12/37)*1295 = Rs.420 C's share = (15/37)*1295 = Rs.525

Ex

A, B and C enter into a business. A put Rs. 1000 for 6 months, B puts Rs. 1200 for 8 months and C puts Rs. 1400 for 10 months. Their gain was Rs. 666 . Find out the share of each partners ?

A

 Ratio of profits will be 10*6 : 12*8 : 14*10 = 60 : 96 : 140 = 15 : 24 : 35 A's share = (15/74)*666 = Rs.135 B's share = (24/74)*666 = Rs.216 C's share = (35/74)*666 = Rs.315

Ex

A, B and C enter into a partnership and their shares are in ratio 1/2 : 1/3 : 1/4, after 2 months, A withdraws half of his capital and after 10 months, a profit of Rs 378 is divided among them. What is B's share ?

A

 Ratio of investments =1/2 : 1/3 : 1/4 , now LCM of 2, 3, 4 is 12 on multiplying the ratio with 12 we get 6 : 4 : 3 , also we assume their initial investment be 6x, 2x and 3x so, we can write: A : B :C = (6x*2*3x*10) : (4x*12) : (3x*12) = 42 : 48 : 36 = 7: 8: 6 B's share = (8/21)*378 = Rs.144