APTITUDE MASTERY SERIES

MODULE 2 – PARTNERSHIP

When two or more people agree to form on organization and run a business jointly, the people who start it are
called partners and the trade is done between the partners is known as partnership.
There are certain costs associated with any kind of business. So, a certain amount of money is required to start a
business. This sum of money which is invested in the business is called capital. In a partnership business, each of
the partners invests a certain sum of money, i.e. a part of the capital, to run the business. They earn some profit and
this profit is distributed among partners either in some prefixed ratio or the ratio of their investment.
P1 : P2 = C1 × T1 : C2 × T2
where, P1 = Profit for Partner 1
C1 = Capital by Partner 1
T1 = Time period for which Partner 1 invested his capital
P2 = Profit for Partner 1
C2 = Capital by Partner 1
T2 = Time period for which Partner 1 invested his capital

There are certain principles on which a partnership business is set-up:

1. Capital: The business partners may invest an equal sum of money individually or their contributions towards the
total capital required may bear a simple ratio to each other.
2. Share of Profits: A mutual agreement is reached before starting the business on how the profits or losses will be
distributed among the partners. The profits or losses will be either shared equally by the partners or on the basis of
the terms mentioned in the initial mutual agreement, whatever those terms maybe. However, if nothing is
mentioned clearly in the initial mutual agreement, then the profits or losses are divided among the partners in the
ratio of their capital investments.
Profit is directly proportional to investment and time.
Profit ∝ investment
Profit ∝ time
Profit ∝ investment × time

There are two types of partnership business:

1. Simple Partnership Business: When the capitals of all the partners are invested for the same period of time it is called
simple partnership business.
2. Compound Partnership Business: When the capitals of partners are invested for different periods of time, then such a
business is called a compound partnership business.

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 Basic Formula:
If two partners A and B are investing their money to run a business then (Simple Partnership)

Capital of A : Capital of B = Profit of A : Profit of B

If two partners A and B are investing their money for different period of time to run a business, then (Compound
Partnership)

Capital of A × Time period of A : Capital of B × Time period of B = Profit of A : Profit of B

If n partners are invested for different period of time then,
C1T1 : C2T2 : C3T3 : ……. : CnTn = P1 : P2 : P3 : …… : Pn
where C is the capital invested, T is time period of capital invested and P is profit earned.

Methods to solve:
Rule 1: If two partners are investing their money C1 and C2 for equal period of time and their total profit is P then
their shares of profit are

If these partners are investing their money for different period of time which is T1 and T2, the their profits are

Rule 2: If n partners are investing their money C1, C2, ……., Cn for equal period of time and their total profit is P
then their shares of profit are

If these partners are investing their money for different period of time which is T1, T2 …., Tn then their profits are

PROBLEMS

1. A and B invest in a business in the ratio of 4:3. If the total profit is Rs. 2100. What would be B’s share?
a) Rs. 1200 b) Rs. 700 c) Rs. 1100 d) Rs. 900

2. 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:
a) Rs. 1425 b) Rs. 1500 c) Rs. 1537.50 d) Rs. 1576

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3. 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.
a) Rs. 1900 b) Rs. 2660 c) Rs. 2800 d) Rs. 2840

4. A starts business with Rs. 3500 and after 5 months, B joins with A as his partner. After a year, the profit is divided
in the ratio 2 : 3. What is B's contribution in the capital?
a) Rs. 7500 b) Rs. 8000 c) Rs. 8500 d) Rs. 9000

5. 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:
a) Rs. 8400 b) Rs. 11900 c) Rs. 13600 d) Rs. 14700

6. 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?
a) 5 : 7 : 8 b) 20 : 49 : 64 c) 38 : 28 : 21 d) None of these

7. A and B started a partnership business investing some amount in the ratio of 3 : 5. C joined then after six months
with an amount equal to that of B. In what proportion should the profit at the end of one year be distributed among
A, B and C?
a) 3 : 5 : 2 b) 3 : 5 : 5 c) 6 : 10 : 5 d) None of these

8. A, B, C rent a pasture. A puts 10 oxen for 7 months, B puts 12 oxen for 5 months and C puts 15 oxen for 3 months
for grazing. If the rent of the pasture is Rs. 175, how much must C pay as his share of rent?
a) Rs. 45 b) Rs. 50 c) Rs. 55 d) Rs. 60

9. 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 total profit of Rs. 25,000 earned at the end of 2 years from
the starting of the business?
a) Rs. 7500 b) Rs. 9000 c) Rs. 9500 d) Rs. 10000

10. Arun, Kamal and Vinay invested Rs. 8000, Rs. 4000 and Rs. 8000 respectively in a business. Arun left after six
months. If after eight months, there was a gain of Rs. 4005, then what will be the share of Kamal?
a) Rs. 890 b) Rs. 1335 c) Rs. 1602 d) Rs. 1780

11. 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?
a) 4months b) 5 months c) 6 months d) 8 months

12. Aman started a business investing Rs. 70,000. Rakhi 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?
a) 4: 5: 6 b) 12: 15: 16 c) 16: 18: 20 d) None of these

13. 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 Simran's share in the profit?
a) Rs. 9,423 b) Rs. 10,250 c) Rs. 12,500 d) Rs. 10,500

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14. A and B entered into partnership with capitals in the ratio 4 : 5. After 3 months, A withdrew 1/4 of his capital
and B withdrew 1/5 of his capital. The gain at the end of 10 months was Rs. 760. A's share in this profit is?
a) Rs. 330 b) Rs. 360 c) Rs. 380 d) Rs. 430

15. A, B and C enter into a partnership in the ratio . 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) Rs. 2100 b) Rs. 2400 c) Rs. 3600 d) Rs. 4000

HOME WORK

16. Abhilash invests Rs. 10,000 in a partnership business. At the end of 4 months he withdraws Rs.2000. At the end
of another 5 months, he withdraws another Rs.3000.If his other partner Udit receives Rs.9600 as his share from
the total profit of Rs.19,100 for the year, how much did Udit invest in the business?
a) Rs. 10000 b) Rs. 8000 c) Rs. 6000 d) Rs. 4000

17. A, Band C enter into a partnership by investing in the ratio of 3 : 2: 4. After 1 year, B invests another Rs.
2,70,000 and C, at the end of 2 years, also invests Rs.2,70,000. At the end of three years, profits are shared in the
ratio of 3 : 4 : 5. Find initial investment of C.
a) 3,60,000 b) 2,80,000 c) 2,50,000 d) 1,50,00

18. Pratap, Rohit and Shekhar enter into a business with investment of Rs.25000, Rs. 30000 and Rs.15000
respectively. A is the working partner and he gets 30% of the profit for managing the business. The balance
profit is distributed in proportion to their investment investments. At the year-end Pratap gets Rs. 200 more than
Rohit and Shekhar together. Find the total profit and the share of each.
a) 2000, 1100, 600, 300 b) 3000, 2100, 600, 300
c) 2500, 1500, 400, 600 d) 2000, 600, 500, 900

19. Agniwesh, Abhilash and Bikram are 3 partners in a business. Their investments are respectively Rs 4,000, Rs
8,000 and Rs 6,000. Agniwesh gets 20% of total profit for managing the business. The remaining profit is
divided among them in the ratio of their investments. At the end of the year, the profit of Agniwesh is Rs 2200
less than the sum of the profit of Abhilash and Bikram. What amount of income will Bikram get?
a) Rs 2100 b) Rs 2400 c) Rs 2700 d) Rs 3000

20. Annu Nikky and Ruby are the partners of a firm. Twice the investment of A is equal to thrice the investment of
B and the investment of B is four times of the C’s investment. What is the share in profit of B if the total profit is
Rs. 29700?
a) Rs. 10800 b) Rs. 20000 c) Rs. 5000 d) Rs 3000