Partnership

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners have limited liability.

In this note we will discuss high Level question based on partnership which are frequently asked in various competitive exams.

Question1: 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 :

Solution:

Let the total profit be Rs. 100.
After paying to charity, A's share  = (95*3/5) = Rs. 57.
If A's share is Rs. 57, total profit = Rs. 100
If A's share is Rs. 855, total profit  = (100/57*855) = 1500.

or 

investment = 3:2
profit = 3:2
=> 3 unit = 855 
1 unit = 285 
5 unit = 1425 

95 % of total profit = 1425 
100 % = 1500 

Question 2:  Two partners invest Rs. 125000 and Rs. 85000 respectively in a business and agree that 60% of the profit should be divided equally between them and the remaining profit is to be divided into ratio of their capitals. If one partner gets Rs. 300 more than the other. Find the total profit made in the business ?

(A) Rs. 3739.50             (B) Rs. 3937.50             (C) Rs. 3749.50             (D) Rs. 3947.50

Solution:

Question 3. Two friends A and B invest in a business in partnership. B borrows 20% of A’s salary, combines it with 60% of his salary and invests with A, who puts all of his remaining salary. One year later the ratio of profit of A and B is 5 : 3 respectively and B returns Rs. 21000 to A which he borrowed from him. What is the difference between salary of A and B ?
A. Rs. 33000 
B. Rs. 56000 
C. Rs. 60000 
D. Rs. 28000 
E. None of these