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

Kumar and Sharma are partners sharing profits and losses in ratio 2 : 1, respectively. Gupta is admitted as a new partner for 1/4th share who brings Rs. 1,25,000 as capital. The capital accounts of the old partners are to be maintained according to their share in future profits. How much should be the capitals of Kumar and Sharma, respectively?

  1. Rs. 2,50,000 and Rs. 1,25,000

  2. Rs. 1,25,000 and Rs. 2,50,000

  3. Rs. 1,87,500 each

  4. Rs. 2,50,000 each

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

Gupta gets 1/4 share for 1,25,000. Total capital of the firm = 1,25,000 * 4 = 5,00,000. Remaining share for Kumar and Sharma is 3/4. Their ratio is 2:1. Kumar's capital = (2/3) * (3/4) * 5,00,000 = 2,50,000. Sharma's capital = (1/3) * (3/4) * 5,00,000 = 1,25,000.

Multiple choice

Akshay and Ajay are partners. Their capital account balances after all adjustments in respect of goodwill, reserves and revaluation profits are Rs. 2,50,000 and Rs. 1,50,000, respectively. Varun is admitted as a new partner for 1/5th share in future profits. He is required to bring proportionate capital to his share in future profits. Calculate the amount of capital to be brought by Varun.

  1. Rs. 80,000

  2. Rs. 5,00,000

  3. Rs. 1,00,000

  4. Rs. 4,00,000

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

Total capital of existing partners = 250000 + 150000 = 400000. This represents 4/5 of the total firm capital (since Varun takes 1/5). Total firm capital = 400000 * (5/4) = 500000. Varun's share = 1/5 * 500000 = 100000.

Multiple choice

The general reserve appearing in the books of firm of A and B is Rs. 80,000. The profit sharing ratio is 3 : 2. C is admitted as a new partner and the new profit ratio becomes 3 : 5 : 2. The partners decide to continue the balance of general reserve in the books. Pass a single journal entry for the adjustment of general reserve.

  1. C's capital a/c Dr. 16,000 B's capital a/c Dr. 8,000 To A's capital a/c 24,000

  2. A's capital a/c Dr. 24,000 To C's capital a/c 16,000 To B's capital a/c 8,000

  3. General reserve a/c Dr. 80,000 To B's capital a/c 48,000 To A's capital a/c 32,000

  4. C's capital a/c Dr. 16,000 To B's capital a/c 10,000 To A's capital a/c 6,000

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

The general reserve is distributed in the old ratio 3:2. A gets 48,000 and B gets 32,000. In the new ratio 3:5:2, the new shares are A: 24,000, B: 40,000, C: 16,000. The adjustment entry reflects the change in capital accounts to maintain the reserve balance.

Multiple choice

Anil started a firm with a capital of Rs. 28,000. After 5 months, Boman joined him and invested Rs. 40,000 in the firm. Chirag was also added as a new partner with an individual investment of Rs. 56,000 after 7 months of commencement. If at the end of the year, the profit of the firm is Rs. 32,000, what is the share (in Rs.) of Boman?

  1. 15,000

  2. 10,000

  3. 20,000

  4. 25,000

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

Calculate equivalent capital for 1 year: Anil = 28000 * 12 = 336000. Boman = 40000 * 7 = 280000. Chirag = 56000 * 5 = 280000. Ratio = 336:280:280 = 6:5:5. Boman's share = (5 / 16) * 32000 = 5 * 2000 = 10000.

Multiple choice

Akbar, Birbal and Caesar are business partners who share the profit proportionate to their respective investments in business. Akbar got Rs. 960 as his share of profit when total profit was Rs. 1,360. If Birbal gets one-fourth of what Caesar gets as his share of profit, then what is Birbal's share in total investment of Rs. 17,000?

  1. Rs. 1,500

  2. Rs. 1,000

  3. Rs. 750

  4. Rs. 400

  5. Rs. 250
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total profit = 1360. Akbar's share = 960. Remaining profit for Birbal and Caesar = 1360 - 960 = 400. Birbal = 1/4 Caesar, so B + 4B = 400, B = 80. Ratio of Birbal to total profit is 80/1360 = 1/17. Birbal's share of 17000 investment = (1/17) * 17000 = 1000.

Multiple choice

X and Y are partners in a business. They share capital, profits and losses in the ratio 2 : 1. At the beginning of the year, the combined capital of the firm stood at Rs. 24,00,000. They both agreed to reconstitute their firm's capital composition and the terms are as follows. Mr. X is to divest Rs. 9,00,000 from his investment in three equal installments at the end of quarters 1, 2 and 3 of the year. Accordingly, Mr. Y is to bring the required amount at the same time, so as to make their capital ratio 1 : 2, considering X's capital as base. If the profit earned for the period is Rs. 9,00,000, then calculate the return on investment of the firm for the financial year.

  1. 20%

  2. 30%

  3. 40%

  4. 50%

  5. 60%
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice

Rikita, Priyanka and Dviti are in partnership in which Dviti is a working partner and the other two are sleeping partners. The working partner is given a monthly salary of Rs. 5000. Dviti receives a total of 2 lakh in one year. Rikita invests 30% more than Dviti, and Priyanka invests 25% more than Dviti. What is the total profit earned in a year?

  1. Rs. 4,97,000

  2. Rs. 5,57,000

  3. Rs. 4,20,000

  4. Rs. 6,00,000

  5. Rs. 7,10,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dviti's annual income is 2,00,000. Salary is 5,000 * 12 = 60,000. Profit share = 1,40,000. Since Dviti is the working partner, the profit is distributed based on investment. Rikita invests 1.3D, Priyanka 1.25D, Dviti 1D. Total investment ratio is 1.3:1.25:1. Total profit = 1,40,000 * (1.3 + 1.25 + 1) / 1 = 1,40,000 * 3.55 = 4,97,000.

Multiple choice

Ali, Bali and Chandni started a business and their investments were in the ratio 4 : 3 : 6. Both Ali and Bali started the business and Chandni joined them after 6 months. Since Chandni was an active partner, it was decided that Chandni would get a monthly salary of Rs. 6000 from the annual profit. Chandni's total salary came out to be 12% of the annual profit after a year. What is the share of Bali in the total profit?

  1. Rs. 36,000

  2. Rs. 3,00,000

  3. Rs. 79,200

  4. Rs. 2,64,000

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

Sofia and Elena started a business in partnership by making investments of Rs. 6500 and Rs. 6100, respectively. After eight months, Sofia and Elena withdrew respectively Rs. 2000 and Rs. 3000, Albina and Anna joined them with capitals of Rs. 2500 and Rs. 5500, respectively. If after one year and six months, the total profit was Rs. 1,54,080, then the profit share of Elena is how much more than the profit share of Anna?

  1. Rs. 12,850

  2. Rs. 11,840

  3. Rs. 13,880

  4. Rs. 14,880

  5. Rs. 15,850
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Calculate investment-months for each person. Sofia: (6500*8 + 4500*10) = 97000. Elena: (6100*8 + 3100*10) = 79800. Albina: 2500*10 = 25000. Anna: 5500*10 = 55000. Total ratio: 970:798:250:550. Calculate share difference.

Multiple choice

Four persons Emma, Olivia, Emily and Angel started a business in partnership by making some investment. The investment by Olivia is 18.75% more than that by Emma. The investment by Emily is 43.75% more than that Emma. The investment by Angel is x% more than that by Emily. If Olivia received Rs. 22,876 after one year as profit share out of total profit of Rs. 1,07,156, then find the profit share of Angel.

  1. Rs. 91,544

  2. Rs. 39,334

  3. Rs. 37,324

  4. Rs. 32,544

  5. Rs. 33,524
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let Emma's investment be E. Olivia = 1.1875E, Emily = 1.4375E. Olivia's profit share is 22876 out of 107156. The ratio of Olivia's investment to total investment is 22876/107156 = 0.21348. Using the ratios, we can find the relative investments and then Angel's share.

Multiple choice

Camila, Alexa, Jesus and Juliana started a business by making investments a, b, c and d, respectively. The seven times a is equal to four times b. Six times b is equal to seven times c and eight times c is equal to eleven times d. If the profit share of Jesus after one year is Rs. 23,418 more than the profit share of Juliana, then find how much the profit share of Alexa is more than that of Camila.

  1. Rs. 42,933

  2. Rs. 52,932

  3. Rs. 41,453

  4. Rs. 47,935

  5. Rs. 32,933
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

7a = 4b => a/b = 4/7. 6b = 7c => b/c = 7/6. 8c = 11d => c/d = 11/8. Ratio a:b:c:d = 44 : 77 : 66 : 48. Difference between Jesus (c) and Juliana (d) is 66 - 48 = 18 parts. 18 parts = 23418, so 1 part = 1301. Difference between Alexa (b) and Camila (a) is 77 - 44 = 33 parts. 33 * 1301 = 42933.

Multiple choice

Ram and Shyam start enterprises with equal contributions of Rs. 5,00,000 each. After 3 months, Mohan joins them with a capital of Rs. 2,00,000 and after 6 months, Ganesh joins them with a capital of Rs. 3,00,000. If the profit for the year is Rs. 3,00,000, then determine the share of Mohan in profit.

  1. Rs. 81,000.25

  2. Rs. 48,615

  3. Rs. 34,615.38

  4. Rs. 25,615

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

Calculate the investment-months: Ram (500,000 * 12), Shyam (500,000 * 12), Mohan (200,000 * 9), Ganesh (300,000 * 6). Total = 6,000,000 + 6,000,000 + 1,800,000 + 1,800,000 = 15,600,000. Mohan's share = (1,800,000 / 15,600,000) * 300,000 = 34,615.38.