8

PARTNERSHIP

INTRODUCTION Compound Partnership is one in which the

In partnership, two or more persons carry on a business
and share the profits of the business at an agreed
proportion. Persons who have entered into partnership
with one another are individually called partners and
collectively called a firm and the name under which their
business is carried on is called the firm name. The
partnership may be simple or compound.
Simple Partnership is one in which the capital
of each partner is in the business for same time.
capitals of partners are invested for different periods.
Sleeping Partner is one who invests the capital
in the business but does not actively participate in the
conduct of business.
Working Partner besides investing capital
takes part in running the business. For his work, he is
either paid same salary or given a certain per cent of
profit, in addition.

SOME BASIC FORMULAE

1. (a) If capital of two partners be Rs. and Rs. for the Therefore, profit share of A
same period and the total profit be Rs. , then shares
of the partners in profits are ×
=
+ +
× ×
. and . . 20000 × 12100
+ + =
20000 + 50000 + 40000
(b) If the capitals of three partners be Rs. , Rs. and
2
Rs. for the same period and the total profits be = × 12100 = . 2200
11
Rs. , then shares of the partners in the profit
Profit share of B
× ×
. , .
+ + + + ×
=
+ +
×
and .
+ + 50000 × 12100
=
20000 + 50000 + 40000

5
Illustration 1: A, B and C invested Rs. 20000, Rs. 50000 = × 12100 = . 5500.
11
and Rs.40000, respectively in a business. The net profile for
the year was Rs. 12100 which was divided in proportion to and, profit share of C
investments. Find the amount of profit each partner earned.
×
=
Solution We have, = 20000, = 50000, = 40000 + +

and P=12100. 40000 × 12100

=
20000 + 50000 + 40000
 4
= × 12100 = . .
11

2. (a) If capital of two partners be Rs. and Rs. for the

same period and , respectively and the total profit
be Rs. , then shares of the partners in profits are:

× × × ×
. , and .
+ +

(b) If the capital of three partners be Rs. , Rs. and

Rs. for the period , and respectively and
the total profit be Rs. , then shares of the partners in
the profits are

× × × ×
. , .
+ + + +

× ×
and .
+ +

Illustration 2: A, B are two partners in a business. A

contributes Rs. 1200 for 5 months and B Rs. 750 for 4
months. If total profit is Rs. 450, find their respective
shares.

Solution: We have = 1200, = 750, = 5, =4

and P=450.

∴ Profit share of A

× × 1200 × 5 × 450
= =
+ 1200 × 5 + 750 × 4

2700000
= = 300
9000

and profit share of B

× ×
=
+

750 × 4 × 450
=
1200 × 5 + 750 × 4
1350000
= = .
9000
 SOME USEFUL SHORT-CUT METHODS

1. (a) If capital of two partners be Rs. and Rs. for the Illustration 4: Anu, Manu and Tanu invested capitals in the
period and , respectively then ratio 4 : 6 : 9. At the end of the business term, they received
the profits in the ratio 2 : 3 : 5. Find the ratio of time for which
Pro it of A × they invested their capitals.
=
Pro it of B ×
Solution: We have, ∶ ∶ = 4∶ 6∶ 9
(b) If the capital of three partners be Rs. , Rs. and Rs.
for the period , and respectively and the total and, ∶ ∶ =2∶ 3∶ 5
profit be Rs. , then profit of A : profit of B : profit of
C= × ∶ × ∶ × Therefore, the ratio of time for which : Anu, Manu and Tanu
invested their capitals
Note: If there is a loss in business, then
2 3 5
= ∶ ∶ = ∶ ∶
Loss of A : Loss of B :Loss of C 4 6 9

= × ∶ × ∶ × 1 1 5
or ∶ ∶ or ∶ ∶
2 2 9

3. Three partners invested their capitals in a business. If the

Illustration 3: There are three partners A, B and C in a certain timing of their investments is in the ratio ∶ ∶ and
business. A puts in Rs. 2000 for 5 months, B puts Rs 1200 for their profits are in the ratio ∶ ∶ then the ratio of
6 months and C Rs 2500 for 3 months. Find the ratio of their their capitals invested is
shares in the profit.
∶ ∶ .
Solution: Here × = 2000 × 5 = 10000, × =
1200 × 6 = 7200 × and × = 2500 × 3 = 7500.
Illustration 5: Gupta, Singhal and Kansal start a business. If
∴ Profit of A : Profit of B : Profit of C the ratio of their periods of investments are 1: 2 : 5 and their
profits are in the ratio of 3 : 4 : 5, find the ratio of Gupta,
= × ∶ × ∶ × Singhal and Kansal .

= 10000: 7200 ∶ 7500 ∶ ∶ Solution: We have ∶ ∶ = 3 ∶ 4 ∶ 5 and

∶ ∶ = 1: 2 ∶ 5.

2. If capitals of three partners are invested in the ratio ∶

∶ and their profits are in the ratio ∶ ∶ , then ∴ Required Ratio = ∶ ∶
the ratio of timing of their investments

3 4 5
= ∶ ∶ = ∶ ∶ or ∶ ∶ .
1 2 5

Thus Gupta, Singhal and Kansal invested their capitals in the

ratio ∶ ∶ .
 MULTIPLE CHOICE QUESTIONS

In each of the following questions a number of possible answers are given, out of which one answer
is correct. Find out the correct answer

1. Nikita and Nishita enter into a partnership investing

Rs 50000 and Rs. 40000, respectively. They agree to share 6. Gupta and Bansal enter into partnership with their capitals
profits in the ratio of their capitals. Find the share of Nikita in the ratio 5 : 6. At the end of 8 months Gupta withdraws
in a profit of Rs. 22500 after one year. his capital. If they receive the profit in the ratio 5 : 9, find
how long Bansal’s capital was used?
(a) Rs 12500 (b) Rs 9500
(c) Rs 10500 (d) None of these (a) 10 months (b) 12 months
(c) 14months (d) None of these.
2. Niki, Nisha and Anu formed a partnership with
investments of Rs.75000, Rs.60000 and Rs.40000 7. Arvind began a business with Rs. 550 and was joined
respectively. After 3 years of operation, the partnership had afterwards by Brij with Rs. 330. When did Brij join if the
a net profit of Rs.26250. What was the share of Anu in the profit at the end of the year were divided in the ratio
profit? 10 : 3?
(a) Rs.6000 (b) Rs.5000 (a) After 4 months (b) After 6 months
(c) Rs.8000 (d) None of these. (c) After 4.5 months (d) None of these.

3. Mahesh, Suresh and Ganesh entered into a partnership.
Mahesh invested Rs.16000 for 9 months. Suresh invested
Rs.12000 for 6 months and Ganesh invested Rs.8000 for
12 months. At the end of the year there was a profit of
Rs.26000.
(a) Rs.8000 (b) Rs.7500
(c) Rs.6000 (d) None of these.
4. Sita and Gita enter into partnership. Sita contributes
Rs.5000 while Gita contributes Rs.4000. After 1 month,
Gita withdraws part of her contribution and after 3
months from the starting Sita puts Rs.2000 more. When
Gita withdraws her money at the same time Rita also joins
them with Rs.7000. If at the end of 1 year there is a profit
of Rs, 1218, what will be share of Rita in profit.
(a) Rs.488.47 (b) Rs.8477.37
(c) Rs.588.47 (d) None of these.
8. A began business with Rs. 3750 and was joined
afterwards by B with Rs. 5000. When did B join if the
profits at the end of the year were divided equally?
(a) After 5 months (b) After 9 months
(c) After 7 months (d) None of these.
9. Anju and Brijesh enter into a partnership with their
capitals in the ratio 5 : 9. At the end of 8 months, Anju
withdraws her capital. If they receive the profits in the
ratio 4 : 9, find how long Brijesh’s capital was used?
(a) 8months (b) 10 months
(c) 12 months (d) None of these
10. A, B and C invested capitals in the ratio 3 : 5 : 9; the
timing of their investments being in the ratio 2 : 3: 1. In
what ratio would their profits be distributed?

(a) 2 : 5: 3 (b) 3 : 2 : 5
5. A starts a business with Rs.3500 and 5 months after B joins
(c) 7 : 5: 3 (d) None of these
A as his partner. After a year the profits are divided in the
ratio of 2 : 3. How much did B contribute?
11. Sumit, Punit and Ramit started a business by investing
their capitals in the ratio 1 : 2 : 3. At the end of the
(a) Rs.7000 (b) Rs.11000
business term, they received the profits in the ratio
(c) Rs.9000 (d) None of these.
1 : 2 : 3. Find the ratio of the time for which they invested
their capitals.
 18. Two partners invested Rs. 12500 and Rs. 8500,
(a) 1 : 1: 1 (b) 2 : 3: 4 respectively in business and decided that 60% of the
(c) 2 : 4: 3 (d) None of these profit incurred from the business will be equally divided
between them while remaining profit will be assumed as
12. A, B and C start a business. If the ratio of their periods of interest on their capitals. If one of the partners get Rs.300
investments are 2 : 3 : 6 and their profits are in the ratio of more profit than the other, what is the total profit in the
4 : 5 : 6, then the ratio of capitals of A, B and C is business?
(a) Rs. 3937.50 (b) Rs. 4940.50
(a) 6 : 8 : 10 (b) 12 : 10 :6 (c) Rs. 3936.50 (d) Rs. 4156
(c) 10 : 12 : 16 (d) None of these
19. A, B, C enter into a partnership with shares in the ratio ∶
13. A, B and C rented a pasture. A puts in 12 oxen for 6
∶ . After 4 months, A increases his share by 50%. If
months, B 8 oxen for 7 months and C 6 oxen for 8
months. If the rent of the field is Rs. 396, what rent is paid the total profit at the end of one year be Rs. 21600, then
by A? B’s share in the profit is
(a) Rs.126 (b) Rs.108
(c) Rs.162 (d) Rs.168. (a) Rs. 2100 (b) Rs. 2400
(c) Rs. 3600 (d) Rs. 4000
14. A, B, C and D enter into partnership. A subscribes of
the capital, B , C and D the rest. What is the share of D
20. A and B invest in a business in the ratio 3 : 2. If 5% of the
out of profit of Rs. 6000?
total profit goes to charity and A’s share is Rs. 855, total
(a) Rs. 2000 (b) Rs. 1600
profit is
(c) Rs. 1200 (d) Rs. 1300
(a) Rs. 1576 (b) Rs. 1537.50
(c) Rs. 1500 (d) Rs. 1425
15. A and B enter into 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, at the end of the year they share profit in 21. B is a sleeping partner and A working. A puts in Rs. 5000
the ratio and B puts in Rs. 1600. A received 12 % of profit for
(a) 2 : 1 : 3 (b) 1 : 3 : 2
managing the business and rest is divided in proportion to
(c) 1 : 1 : 2 (d) 1 : 1 : 1
their capitals. A’s share of profit in a profit of Rs.880 is

16. A and B started a business with initial investments in the

(a) Rs.350 (b) Rs. 400
ratio 5 : 7. If after one year their profits were in the ratio 1
(c) Rs. 420 (d) Rs. 460
: 2 and the period for A’s investment was 7 months, B
invested the money for
(a) 6 months (b) 2 months 22. A starts a business with a capital of Rs. 1200. B and C
(c) 10 months (d) 4 months. join with some investments after 3 and 6 months,
respectively. If at the end of a year, the profit is divided in
17. A and B jointly invested Rs. 2100 and Rs. 3100, the ratio 2 : 3 : 5 respectively, what is B’s investment in
respectively in a firm. A is an active partner and hence he the business?
gets 25% of profits separately. If their business yields (a) Rs.2400 (b) Rs. 1800
them total Rs. 1040 as profit what will be the gain of each (c) Rs. 3600 (d) Rs. 6000
of them? .
(a) Rs. 415, Rs. 625 (b) Rs. 575, Rs. 465
(c) Rs. 515, Rs. 525 (d) Rs. 560, Rs. 480
23. A, B and C entered into a partnership with Rs. 3512420,
Rs. 4222180 and Rs. 4065400. After 2 years A withdrews
Rs. 11 lacs and at the same time C invested Rs. 8 lacs
more. If at the end of 3 years the profit is Rs. 1053000,
what is the share of C in the profit?
(a) Rs. 283117.80 (b) Rs. 379996.20
(c) Rs. 399866 (d) Rs. 299866
(e) None of these

24. A and B enter into partnership. A supplies whole of the

capital amounting to Rs. 45000 with the condition that the
profits are to be equally divided and that B pays A interest
on half of the capital at 10% per annum, but receives,
Rs.120 per month for carrying on the concern. When B’s
income is one-half of A’s income their total yearly profit
is
(a) Rs. 9180 (b) Rs. 7150
(c) Rs. 3060 (d) Rs.1440
(e) None of these

25. A, B and C entered into a partnership by investing Rs.

12000, Rs. 15000 and Rs. 18000, respectively. A is also a
working partner and getting 15% of the annual profit for
his work. If B and C got Rs.8500 and Rs. 10200,
respectively from the annual profit as their shares, what
amount did A get from the annual profit?

(a) Rs. 10,500 (b) Rs. 11,500

(c) Rs. 11,300 (d) Rs. 14,000
EXPLANATORY ANSWERS
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 QUESTIONS FROM COMPETITIVE EXAMS

1. A, B, C subscribe Rs. 50000 for business. A subscribes
4000 more than B and B subscribes Rs. 5000 more than
C. Out of total profit of Rs. 3500 A receives:
(a) Rs 11900 (b) Rs 8400
(c) Rs 14700 (d) Rs 13600
2. A and B enter into a partnership with Rs.50,000 and Rs.
60,000 respectively. C joins them after x months
contributing Rs. 70,000 and B leaves x months before
the end of the year. If they share the profit in the ratio
of 20 : 18 : 21, then find the valve of x
6. M, P and Q jointly thought of engaging themselves in a
business venture. It was agreed that M would invest Rs.
6500 for 6 months, P, Rs.8400 for 5 months and Q, Rs.
10,000 for 3 months. M was to be the working member
of the group for which he was to receive 5% of the
profits. The profit earned was Rs. 7030. Calculate the
share of P in the profit.
(a) Rs. 2660 (b) Rs. 1900
(c) Rs.2840 (d) Rs.2800

(a) 9 (b) 3
(c) 6 (d) 8

3. Rs. 120 are divided among X, Y and Z so that X’s share

is Rs.20 more than Y’s share and Rs. 20 less than Z’s
share. What is Y’s share?

(a) Rs. 40 (b) Rs. 30

(c) Rs. 25 (d) Rs. 20

4. Surendra, Rajendra and Manindra invested some

amount in a business in the ratio of 5 : 7 : 6
respectively. In the next year, they increased their
investments by 26%, 20% and 15% respectively. The
profi earned during the second year should be
distributed in what ratio among Surendra, Rajendra and
Manindra

(a) 31 : 27 : 21
(b) 21 : 28 : 23
(c) 26 : 20 : 15
(d) Cannot be determined
(e) None of these

5. X and Y start a business. X invests Rs. 3000 for 4

months and Y invests Rs. 2000 for 6 months. How
much should X be paid out of a total profit of Rs. 500?
(a) Rs. 200 (b) Rs. 300
(c) Rs. 250 (d) Rs. 350
EXPLANATORY ANSWERS
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 EXERCISES FOR SELF-PRACTICE

TEST – I [Time : 10 min]

1. A began business with Rs.6000 and was joined with a capital of Rs. 15000. The share of C in a profit of
afterwards by B with Rs.8000.At the end of the year B Rs. 45000 after 2 years will
got one-third of the total profit. When did B join?
(a) Rs. 21200 (b) Rs. 19200
(a) After 3 months (b) After 4 months (c) Rs. 14400 (d) Rs. 12000
(c) After 8 months (d) After 9 months
7. A began business with Rs. 4200 and was joined
2. Dolly, Veena and Aruna started a shop by making afterwards by B with Rs. 7200. When did B join if the
investments in the ratio ∶ ∶ . After 4 months Dolly profits at the end of the year were divided equally?
increased her capital by 70%. If the total profit at the
(a) After 7 months
end of one year be Rs. 9600, Aruna’s share in profit
(b) After 7 months
was
(c) After 5 months
(a) Rs. 2100 (b) Rs. 4500
(d) After 8 months
(c) Rs.2000 (d) Rs. 3200

8. A and B began business with Rs. 3000 and Rs. 4000.

3. A and B are two business partners. They decided to
After 8 months, A withdraws Rs.1000 and B advances
distribute equally 60% of the profit and remaining 40%
Rs. 1000 more. At the end of the year, their profits,
as the interest on their capital. If they invested Rs. 1250
amounted to Rs. 630. Find the shares of
and Rs. 850, respectively and A received Rs. 30 more
than B, the total profit was
(a) Rs. 240 (b) Rs. 350
(c) Rs. 340 (d) Rs. 390
(a) Rs. 371.25 (b) Rs. 423.75
(c) Rs. 325.50 (d) Rs. 393.75
9. Rahul started a business with Rs. 8000. After six
months, Sanjay joined him with investment of some
4. A, B and C are partners in business and their shares are
capital. If at end of the year each of them gets equal
in the proportion ∶ ∶ . A withdraws half his capital
amount as profit, how much did Sanjay invest in the
at the end of 4 months and after 8 months more profit of business?
Rs. 1694 is divided. A’s share is (a) Rs. 18000 (b) Rs. 17500
(c) Rs. 16000 (d) Rs. 16500
(a) Rs.560 (b) Rs.630
(c) Rs. 440 (d) Rs. 504 10. Rakesh and Mukesh are partners in a business. They
divide between them the profit incurred in the business
5. A, B and C enter partnership by making investments in in such a proportion that th proportion of the profit
the ratio 3 : 5 : 7. After a year, C invests another of
Rs. 337600 while A withdraws Rs. 45600. The ratio of gained by Rakesh is equal to rd proportion of the profit
investments then changes to 24 : 59 : 167. How much gained by Mukesh. If total profit in the business is Rs.
did A invest initially? 1210, find the profit earned by Mukesh
(a) Rs. 45600 (b) Rs. 96000
(c) Rs. 141600 (d) None of these (a) Rs. 780 (b) Rs. 550
6. A and B enter into partnership, investing Rs. 12000 and (c) Rs. 680 (d) Rs. 590
Rs. 16000, respectively. After 8 months, C joins them
TEST – II [Time : 10 min]

11. A started a business with Rs.3200. After sometime B 16. A, B and C have respectively invested Rs. 20, Rs. 18
joined him with Rs. 4800. If at the end of one year they and Rs. 12 (all in thousands) jointly in a business. A
got equal profit, after how many months did B join? and B receive respectively, 12% and 8% of the annual
profits for services, the remainder being divided among
(a)6 (b)5 A, B and C in proportion to their capitals. If at the end
(c)3 (d)4 of the year A receives altogether Rs. 648 more than B,
(e) None of these C’s share is

12. Ramesh, Mahesh and Naresh jointly hired a vedio (a) Rs. 3960 (b) Rs. 3312
cassette. If they use it for 6 hours, 10 hours and 12 (c) Rs. 1728 (d) Rs. 2400
hours, respectively, what is the share of Naresh for
rent? 17. A, B and C are three partners. They altogether invested
(a)Rs. 75 (b)Rs. 125 Rs. 1400 in business. At the end of the year A got Rs.
(c)Rs. 35 (d)Rs. 150 337.50, B Rs. 1125.00 and C Rs. 637.50 as profit. The
(e) None of these difference between investments of B and A was

(a) Rs. 4200 (b) Rs. 3200

13. Two partners invest Rs. 12500 and Rs. 8500, (c) Rs. 2200 (d) Rs. 5250
respectively in a business. If one partner gets Rs. 300
more than the other in the profit. What is the total 18. If 2 (A’s capital) = 3 (B’s capital) = 5 (C’s capital), out
profit? of a total profit of Rs. 930, C gets
(a) Rs. 1475 (b) Rs. 1575
(c) Rs. 1675 (d) Rs. 1570 (a) Rs. 180 (b) Rs. 450
(e) Rs. 157 (c) Rs. 300 (d) Rs. 350

14. A and B enter into partnership investing Rs. 1200 and 19. A and B rent a pasture for 10 months. A puts in 80 oxen
Rs. 1600 respectively. After 8 months C joins them for 7 months. How many can B put in for the remaining
with a capital of Rs. 1500. If in 2 years profit earned is 3 months if he pays half as much again as A?
Rs. 4560, A’s share will
(a) 280 (b) 250
(a) Rs. 1440 (b) Rs. 1200 (c) 220 (d) 180
(c) Rs. 1920 (d) Rs. 1320
20. A, B and C purchase a form for Rs. 10000 of which A
15. A puts in Rs. 600 more in business then B, but B has pays Rs. 4000. They sell it so as to gain a certain sum
invested his capital for 4 months. If A gets Rs. 48 more of which B gets Rs. 275 and C Rs. 175. A’s share is
than B out of the total profit of Rs. 528, money invested
by B was (a) Rs. 275 (b) Rs. 300
(c) Rs. 325 (d) Rs. 250
(a) Rs. 1800 (b) Rs. 600
(c) Rs. 1200 (d) None of these
SOLUTIONS for PROBLEMS

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