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 starts a business with $Rs. 5000$ and $B$ joins the business $5$ months later with an investment of $Rs. 6000$. After a year, they earn a profit of $Rs. 34000$. Find the shares of $A$ and $B$ in the profit amount depending on their individual investment.
  1. $Rs. 20000, Rs. 14000$
  2. $Rs. 16000, Rs. 16000$
  3. $Rs. 14000, Rs. 20000$

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

A invests 5000 for 12 months (60,000). B invests 6000 for 7 months (42,000). Ratio = 60:42 = 10:7. Total profit 34000. A's share = (10/17) * 34000 = 20000. B's share = (7/17) * 34000 = 14000.

Multiple choice

Mary and mike enter into a partnership by investing Rs. $700$ and Rs. $300$ respectively. At the end of one year, they divided their profits such that a third of the profit is divided equally for the efforts they have put into the business and the remaining amount of profit is divided in the ratio of the investments they made in the business. If Mary received Rs. $800$ more than Mike did, what was the profit made by their business in that year?
  1. $1000$
  2. $2000$
  3. $3000$
  4. $4000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Ratio of investment = 700:300 = 7:3. Let total profit = P. 1/3 P is divided equally (P/6 each). 2/3 P is divided in 7:3 ratio (Mary gets 7/10 * 2/3 P = 7/15 P, Mike gets 3/10 * 2/3 P = 3/15 P = 1/5 P). Mary total = P/6 + 7/15 P = 19/30 P. Mike total = P/6 + 1/5 P = 11/30 P. Difference = 8/30 P = 800. P = 3000.

Multiple choice

Maruti and Suzuki entered into a partnership $5$ months ago. The ratio of profit claimed by Maruti and Suzuki is $6 : 17$. If Suzuki had just started business $12$ months ago with Rs. $1275$, what is the amount contributed by Maruti?
  1. Rs. $980$
  2. Rs. $1080$
  3. Rs. $1200$
  4. Rs. $998$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Profit ratio = (Investment * Time). Maruti: M * 5 months. Suzuki: 1275 * 12 months. Ratio M*(5) / (1275*12) = 6/17. M = (6 * 1275 * 12) / (17 * 5) = 6 * 75 * 12 / 5 = 6 * 15 * 12 = 1080.

Multiple choice

Choose the correct answer from the alternatives given. Three partners invested capital in the ratio $2 : 7 : 9$. The time period for which each of them invested was in the ratio of the reciprocals of the amount invested. Find the share of the partner who brought in the highest capital, if profit is Rs. $1080$.
  1. Rs. $120$
  2. Rs. $360$
  3. Rs. $540$
  4. Rs. $420$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Capital ratio = 2:7:9. Time ratio = 1/2 : 1/7 : 1/9. Multiply by LCM (126) to get time ratio = 63 : 18 : 14. Profit ratio = Capital * Time = (2*63) : (7*18) : (9*14) = 126 : 126 : 126 = 1 : 1 : 1. Total profit = 1080. Each partner gets 1080 / 3 = 360.

Multiple choice

A, B and C enter into a partnership by investing in the ratio of 3: 2: 4. After one 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 the initial investment of C.

  1. Rs. 2,70,000

  2. Rs. 1,80,000

  3. Rs. 3,60,000

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

Let initial investments be 3x, 2x, 4x. A's contribution: 3x * 3 years = 9x. B's contribution: 2x * 1 year + (2x + 270000) * 2 years = 6x + 540000. C's contribution: 4x * 2 years + (4x + 270000) * 1 year = 12x + 270000. Ratio of profits 3:4:5. Solve 9x / (6x + 540000) = 3/4 to find x = 360000 / 4 = 90000. C's initial = 4x = 360000.

Multiple choice

A, B and C enter into a partnership and their shares are in the ratio $\displaystyle \frac{1}{2}:\frac{1}{3}:\frac{1}{4}$. After $2$ months A withdraws half of his capital and after $10$ months a profit of Rs $378$ is divided among them. What is Bs share?
  1. Rs $129$
  2. Rs $144$
  3. Rs $156$
  4. Rs $168$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ratio 1/2 : 1/3 : 1/4 = 6 : 4 : 3. Let capitals be 6x, 4x, 3x. A's investment: (6x * 2) + (3x * 8) = 12x + 24x = 36x. B's investment: 4x * 10 = 40x. C's investment: 3x * 10 = 30x. Ratio of profits = 36 : 40 : 30 = 18 : 20 : 15. Total parts = 18 + 20 + 15 = 53. B's share = (20 / 53) * 378. Calculation: 20 * 7.13 = 142.6. Checking ratio: 378 / 53 is not an integer. Re-reading: A withdraws half, so 6x becomes 3x. 12x + 3x*8 = 36x. Correct. Maybe the profit is different or ratio is different. 144 is the closest option.

Multiple choice

If any partner has advanced some money to the firm beyond the amount of his capital for the purpose of business, he shall be entitled to get an interest on the amount at the rate of _____ percent per annum.

  1. 3

  2. 4

  3. 5

  4. 6
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to the Indian Partnership Act, 1932, if a partner advances money to the firm beyond their capital, they are entitled to interest at the rate of 6 percent per annum unless otherwise agreed.

Multiple choice

A, B and C are the partners sharing profits and losses in the ratio of $5:3:2$, took a joint life policy of Rs. $30,000$. On the death of B what amount will be payable to each partner will be ____________.
  1. A- Rs. $22,000$ and B- Rs. $8,000$
  2. A- Rs. $14,000$ and B- Rs. $16,000$
  3. A- Rs. $15,000$, B- Rs. $9,000$ and C- Rs. $6,000$
  4. A- Rs. $10,000$, B- Rs. $8,000$ and C- Rs. $10,000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The joint life policy amount is shared among partners in their profit-sharing ratio. Ratio 5:3:2. Total parts = 10. Each part = 30,000 / 10 = 3,000. A gets 5 * 3,000 = 15,000. B gets 3 * 3,000 = 9,000. C gets 2 * 3,000 = 6,000.

Multiple choice

X,Y and Z are three partners in a firm.They are sharing profit and loss in the ratio of 3:2:1.On 11th Jan Y died. The firm decided to value goodwill based on 3 years purchase of weighted average of 5 years profit.The trading profit of the firm for the past five years before charging interest on capital was as under Rs.10,000,Rs.9,000,Rs.11,000,Rs.7,000,Rs.8,000. The capital of the firm stood Rs.50,000 and interest on capital of the firm stood Rs.50,000 and interest on capital is given at 8%. What is Y's share of goodwill?

  1. Rs.15,000

  2. Rs.9,000

  3. Rs.10,000

  4. Rs.7,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice

Ram, Mohan and Sohan are partners in a firm sharing profits in the ratio 3:2:1. With effect from April 1, 2007 they decided to share profits equally as Sohan brings in additional capital. This is an example of ______________.

  1. Retirement of an existing partner

  2. Death of a partner

  3. Change in the profit sharing ratio among the existing partner

  4. Admission of a new partner
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When partners change their profit sharing ratio without adding or removing a partner, it is a reconstitution of the firm through a change in the profit sharing ratio.

Multiple choice

A and B are partners in a firm and are sharing in the ratio of $3 : 2$. C is admitted for $1/5$ share of profit and brings $Rs. 10,000$ as capital. The adjusted capital of B will be ____________.
  1. $Rs. 10,000$
  2. $Rs. 12,000$
  3. $Rs. 14,000$
  4. $Rs. 16,000$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

C brings 10,000 for 1/5 share, so total capital of firm = 50,000. Remaining share for A and B is 4/5. A and B share in 3:2 ratio. B's capital = (4/5) * (2/5) * 50,000 = (8/25) * 50,000 = 16,000.

Multiple choice

A, B, C were partners sharing profits in the proportion of $1/2, 1/3$ and $1/6$, respectively. On $31^{st} March, 2001$ their capital stood as follows: $A = Rs. 8,00,000$ $B = Rs. 6,00,000$ $C = Rs. 5,00,000$ A sum of $Rs. 2,40,000$, also appeared as reserve fund in their balance sheet on this date. B retires on the date when the goodwill of the firm was valued at $Rs. 3,60,000$. Profit and loss adjustment account prepared on that date without taking goodwill and reserve fund into consideration showed a net profit or $Rs. 57,000$. The net amount payable to B will be _________.
  1. $Rs. 7,65,000$
  2. $Rs. 8,19,000$
  3. $Rs. 7,27,000$
  4. $Rs, 8,08,000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

B's share of capital = 6,00,000. B's share of reserve (1/3 of 2,40,000) = 80,000. B's share of profit (1/3 of 57,000) = 19,000. B's share of goodwill (1/3 of 3,60,000) = 1,20,000. Total = 6,00,000 + 80,000 + 19,000 + 1,20,000 = 8,19,000.

Multiple choice

A and B are in partnership with Rs.30,000 and Rs. 20,000 as their respective Capitals. They admitted C as a partner for 1/6th share in profits. The amount of C's share In the Capital of the firm if he is asked to bring in Capital in proportion to his profit sharing ratio will be ________.

  1. Rs.10,000

  2. Rs.8,333

  3. Rs.16,667

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

Total capital of A and B = 30000 + 20000 = 50000. This represents 5/6 of the total capital (since C has 1/6). 5/6 * Total = 50000, so Total = 60000. C's share = 1/6 * 60000 = 10000.

Multiple choice

X and Y are partners in a partnership firm sharing profits in the ratio of 5:3 with a capital of Rs. 5,00,000 & Rs. 4,00,000 respectively. Z was admitted on the following terms: Z would pay Rs. 100,000 as capital and Rs. 32,000 as Goodwill, for a 1/5th share of profit. The balances of capital accounts after the admission of Z will be in the ratio of _______.

  1. 5,20,000 : 4,12,000 : 1,00,000

  2. 5,00,000 : 4,00,000 : 1,00,000

  3. 5,12,000 : 4,20,000 : 1,00,000

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

Z brings 100,000 capital and 32,000 goodwill. The goodwill is distributed to X and Y in their ratio 5:3. X gets 20,000, Y gets 12,000. New capital X = 500,000 + 20,000 = 520,000. New capital Y = 400,000 + 12,000 = 412,000. Z = 100,000.

Multiple choice

A,B & Care partners sharing profits and losses in the ration of $3:2:1$ C retires on a decided date and Goodwill of the firm is to be valued at $Rs.60,000$. Find the amount payable to retiring partner on account of goodwill.
  1. $Rs.30,000$
  2. $Rs.20,000$
  3. $Rs.10,000$
  4. $Rs.60,000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

C's profit-sharing ratio is 1 out of a total ratio of 3 + 2 + 1 = 6. Therefore, C's share of goodwill is 1/6 x Rs. 60,000 = Rs. 10,000.