Partnership
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What is Partnership?
The form of association of two or more persons, who contributes resources like money together in order to carry on a business, is known as partnership. It is of following two types:
- Simple Partnership: A partnership in which capitals of the partners are invested for the same time is known as simple partnership. The profit's or losses are divided among the partners in the ratio of their investment.
- Compound Partnership: A partnership, in which the capitals of the partners are invested for different periods, is known as compound partnership. In such cases equivalent capitals are calculated for each partner by multiplying their capital contributions with time. The profit's or losses are then divided in the ratio of these equivalent capitals.
A partner who only invests capitals but does not participate in the working of the business is called a sleeping partner while one who also participates in the working of business is called a working partner. A working partner gets either monthly payment or a share in the profit for his contribution in the management of the business. This payment is deducted from the total profit before it's distribution.
1 A and B invest in a business in the ratio 3 : 2. If 5% of the total profit goes to trust and A's share is ₹ 855, the total profit is:
2 A, B and C jointly thought of engaging themselves in a business. It was agreed that A would invest ₹ 6500 for 6 months, B ₹ 8400 for 5 months and C ₹ 10,000 for 3 months. A wants to be the working member for which, he was to receive 5% of the profit's. The profit earned was ₹ 7400. Calculate the share of B in the profit:
3 A, B and C enter into a partnership in the ratio $$\frac{7}{2}$$ : $$\frac{4}{3}$$ : $$\frac{6}{5}$$. After 4 months, A increases his share 50%. If the total profit at the end of one year be ₹ 21,600, then B's share in the profit is:
4 A, B, C subscribe ₹ 5,00,000 for a business. A subscribes ₹ 40,000 more than B and B ₹ 50,000 more than C. Out of a total profit of ₹ 3,50,000 A receives:
5 Three partners shared the profit in a business in the ratio 5 : 7 : 8. They were for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?
6 A start a business with ₹ 85,000. He was joined afterwards to B with ₹ 42,500. For how much period does B join, if the profit's at the end of the year are divided in the ratio of 3 : 1?
7 Chandan started a business investing ₹ 70,000. Rani joined him after six months with an amount of ₹ 1,05,000 and Joydeep joined them with ₹ 1.4 lakhs after another six months. The amount of profit earned should be distributed in what ratio among Chandan, Rani and Joydeep respectively, 3 years after Chandan started the business?
8 Abdul, Sekh and Gopal invested ₹ 8000, ₹ 4000 and ₹ 8000 respectively in a business. Abdul left after six months. If after eight months, there was a gain of ₹ 4005, then what will be the share of Sekh?