Quantitative Aptitude

Partnership

842 Questions
All Capital changes, admission, and withdrawal 249 Compound partnership and time-weighted capital 186 Absolute profit or percentage difference to ratio 126 Simple partnership 100 Working and sleeping partners 79 Retirement and gaining ratio 63 Interest on capital and fixed allowances 39

Partnership Questions

Multiple choice

A, B and C invested their money in the ratio 3 : 6 : 7. If the total amount invested by them was Rs. 80,000 and the profit earned was 40% of the amount invested, then what was the sum of the shares of B and C in the profit?

  1. Rs. 18,000

  2. Rs. 26,000

  3. Rs. 26,500

  4. Rs. 24,000

  5. Rs. 24,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Investments ratio 3:6:7, total 80,000. Profit = 40% of 80,000 = 32,000. B and C share = (6+7)/(3+6+7) = 13/16. Share = (13/16) * 32,000 = 13 * 2,000 = 26,000.

Multiple choice

Directions: Study the given information carefully and answer the question that follows. P and Q entered into a partnership agreement and invested capitals in the respective ratio of 6 : 5. 4 months after the start of business, P withdrew 1/6th of his capital amount and Q withdrew 1/5th of his capital amount for their personal use. What would be P's share in the profit, if the profit earned at the end of the year was Rs. 783?

  1. Rs. 482

  2. Rs. 432

  3. Rs. 427

  4. Rs. 450

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

P's investment: (6 * 4) + (5 * 8) = 24 + 40 = 64. Q's investment: (5 * 4) + (4 * 8) = 20 + 32 = 52. Ratio 64:52 = 16:13. P's share = (16/29) * 783 = 16 * 27 = 432.

Multiple choice

A and B started a business jointly. A's investment was thrice the investment of B and the period of his investment was two times the period of investment of B. If B received Rs. 4000 as profit share, then their total profit (in Rs.) was

  1. Rs. 16,000

  2. Rs. 20,000

  3. Rs. 24,000

  4. Rs. 28,000

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Profit ratio = (Investment A * Time A) : (Investment B * Time B). A's investment = 3B, Time A = 2*Time B. Ratio = (3B * 2T) : (B * T) = 6:1. B's share is 4000, so A's share is 24000. Total profit = 28000.

Multiple choice

2 friends Manoj and Ravi started a business by investing Rs. 1,50,000 and Rs. 2,00, 000, respectively. After 6 months, Ravi withdrew some amount of his investment. At the same time, a 3rd friend Gurpreet joined the business by investing the same amount which Ravi had withdrawn. At the end of the year, Ravi and Gurpreet distributed their profits in the ratio 5 : 3. If the total profit for the year was Rs. 1,54,000, what was the share of Manoj in the profit?

  1. Rs. 66,000

  2. Rs. 84,000

  3. Rs. 96,000

  4. Rs. 72,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Manoj's capital-time is 150000 × 12 = 1800000. From Ravi's and Gurpreet's 5:3 profit ratio, Ravi withdraws 150000, giving capital-time values 1500000 and 900000; Manoj's share is 1800000/4200000 × 154000 = Rs. 66000.

Multiple choice

Directions: A question and three statements I, II and III are given. You have to decide whether the data given in the statements is sufficient to answer the question or not. In a partnership business of A, B and C, what profit did B get at the end of 2 years? I. A and B started the business by investing in ratio 3 : 5. II. C joined after 6 months with Rs. 4 lakh. III. After two years, A's share in profit was Rs. 60,000.

  1. Only I and III are sufficient.

  2. Only II and III are sufficient.

  3. Either I, or II and III together is/are sufficient.

  4. All, i.e. I, II and III, are necessary to answer the question.

  5. The question cannot be answered, even with all, i.e. I, II and III.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

To find B's profit, we need the ratio of investments and the ratio of time periods. Statement I gives investment ratio. Statement II gives C's investment and time, but we need the total profit or B's specific share. Statement III gives A's share. With I and III, we can find the total profit and thus B's share, provided we know the time periods (which are given as 2 years).

Multiple choice

In a partnership firm ABC, Sahil, Toby and Veena invest in the ratio of 3 : 2 : 4. After 1 year, Toby invests another Rs. 5,40,000 and Veena invests Rs. 5,40,000 at the end of 2 years. At the end of 3 years, profits are shared in the ratio of 3 : 4 : 5. Find initial investment of Sahil, if he is the person who started the business in the beginning.

  1. Rs. 5,40,000

  2. Rs. 6,00,000

  3. Rs. 1,50,000

  4. Rs. 1,00,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let initial investments be 3x, 2x, 4x. Sahil: 3x * 36 months. Toby: 2x * 12 + (2x + 5.4L) * 24. Veena: 4x * 24 + (4x + 5.4L) * 12. Equating ratios to 3:4:5 allows solving for x.

Multiple choice

Jalal, Amit and Feroz enter into a partnership. Jalal invests 4 times as much as Amit, and Amit invests three-fourth of what Feroz invests. At the end of the financial year, the total profit earned is Rs. 19,000. Find the share of Jalal.

  1. Rs. 15,000

  2. Rs. 12,000

  3. Rs. 13,000

  4. Rs. 10,000

  5. Na
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let F = x. A = 3/4 * x. J = 4 * A = 4 * (3/4 * x) = 3x. Total investment ratio J:A:F = 3x : 0.75x : x = 12:3:4. Total parts = 19. Jalal's share = 12/19 * 19000 = 12000.

Multiple choice

The ratio of investment made by two partners is 7 : 8 and the ratio of their profits is 4 : 3. If 'A' invested the money for 6 months, then for how long did 'B' invest his money?

  1. 63/16 months

  2. 63/11 months

  3. 63/12 months

  4. 61/16 months

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Profit ratio = (Investment A * Time A) / (Investment B * Time B). Given 4/3 = (7 * 6) / (8 * T). Solving for T: 4/3 = 42 / (8 * T) -> 32T = 126 -> T = 126/32 = 63/16.

Multiple choice

In what ratio did A, B and C invest money in the business, if they were partners in the business for 18 months, 15 months and 12 months, respectively. Also, they shared the profit of the business in the ratio 6 : 8 : 10.

  1. 10 : 16 : 25

  2. 20 : 52 : 75

  3. 37 : 51 : 72

  4. 41 : 49 : 65

  5. 42 : 49 : 60
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Profit ratio = (Investment * Time). Let investments be I_A, I_B, I_C. 18*I_A : 15*I_B : 12*I_C = 6 : 8 : 10. I_A = 6/18 = 1/3. I_B = 8/15. I_C = 10/12 = 5/6. Ratio = 1/3 : 8/15 : 5/6 = 10 : 16 : 25.

Multiple choice

Mr. L and Mr. M are partners in a partnership firm sharing profits and losses in the ratio 5 : 3. Mr. N wanted to join their business as a partner. He purchased 50% share in the future profits of the firm upon agreement by Mr. L and Mr. M. He obtained half of his required share directly from Mr. L and the remaining share from Mr. L and Mr. M in their existing ratios. Find the new profit sharing ratio of the partners.

  1. 7 : 9 : 15

  2. 7 : 9 : 16

  3. 4 : 1 : 10

  4. 1 : 4 : 11

  5. 5 : 7 : 10
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mr. N gets 1/2 share. He takes 1/4 from L and 1/4 from L and M in 5:3 ratio. L gives 1/4 + (5/8 * 1/4) = 1/4 + 5/32 = 13/32. M gives (3/8 * 1/4) = 3/32. Remaining shares: L = 5/8 - 13/32 = 7/32. M = 3/8 - 3/32 = 9/32. Ratio L:M:N = 7:9:16.

Multiple choice

A, B, C, D and E start a partnership firm. Capital contributed by A is three times that contributed by D. E contributes half of A's contribution, B contributes one-third of E's contribution and C contributes two-third of A's contribution. If the difference between the combined shares of A, D and E and the combined shares of B and C in the total profit of the firm is Rs. 13,500, what is the combined share of B, C and E? (The shares are supposed to be proportional to the contributions)

  1. Rs. 13,500

  2. Rs. 18,000

  3. Rs. 19,750

  4. Rs. 20,250
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let D = x. Then A = 3x, E = 1.5x, B = 0.5x, C = 2x. Total = 3x + x + 1.5x + 0.5x + 2x = 8x. Combined (A,D,E) = 3x + x + 1.5x = 5.5x. Combined (B,C) = 0.5x + 2x = 2.5x. Difference = 3x = 13500, so x = 4500. Combined (B,C,E) = 0.5x + 2x + 1.5x = 4x = 4 * 4500 = 18000.

Multiple choice

Vishal, a new partner with 1/6th share in the firm, brought Rs. 50,000 cash, Rs. 30,000 stock, Rs. 25,000 investment and Rs. 45,000 furniture as his share of capital and goodwill. Goodwill of the firm is valued at Rs. 30,000. What should be the amount credited to his capital account?

  1. Rs. 1,50,000

  2. Rs. 1,20,000

  3. Rs. 1,45,000

  4. Rs. 50,000

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total assets brought = 50,000 + 30,000 + 25,000 + 45,000 = 1,50,000. This includes capital and goodwill. Goodwill = 30,000 * (1/6) = 5,000. Capital = 1,50,000 - 5,000 = 1,45,000.

Multiple choice

Smith was admitted as a new partner with 1/4th share in the firm of Warner and Marsh. Goodwill of the firm was valued at Rs. 1,00,000 and he brought Rs. 25,000 as his share of goodwill. At the time of his admission, Warner sacrificed 1/2 while Marsh gained 1/4 in future profits. The journal entry for adjustment of goodwill brought by Smith will be:

  1. Smith's capital a/c Dr. 25,000 Marsh's capital a/c Dr. 25,000 To Warner's capital a/c 50,000

  2. Premium for goodwill a/c Dr. 25,000 Marsh's capital a/c Dr. 25,000 To Warner's capital a/c 50,000

  3. Premium for goodwill a/c Dr. 25,000 To Marsh's capital a/c 12,500 To Warner's capital a/c 12,500

  4. Warner's capital account Dr. 50,000 To Premium for goodwill 25,000 To Marsh's capital a/c 25,000

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Warner sacrifices 1/2 share, meaning he gains 1/2 of the goodwill. Marsh gains 1/4, meaning he must pay 1/4 of the total goodwill value (1/4 of 1,00,000 = 25,000). Smith brings 25,000, so the entry debits Premium for Goodwill (25,000) and Marsh's Capital (25,000) to credit Warner's Capital (50,000).