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 in a new business Rs. 10,000, Rs. 20,000 and Rs. 30,000, respectively. After 1 year, A added Rs. 5000 to the initial investment. B and C withdrew Rs. 5000 and Rs. 10,000, respectively. After 2 years, the total profit is Rs. 9900. What is difference between A's and C's share in the profit?

  1. Rs. 1500

  2. Rs. 2250

  3. Rs. 4500

  4. Rs. 1000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A: (10000*12 + 15000*12) = 300000. B: (20000*12 + 15000*12) = 420000. C: (30000*12 + 20000*12) = 600000. Ratio A:B:C = 30:42:60 = 5:7:10. Total parts = 22. Profit = 9900. Value per part = 9900/22 = 450. Difference between A and C = (10-5) * 450 = 5 * 450 = 2250.

Multiple choice

A and B started a business by investing Rs. 4000 and Rs. 5000, respectively. A is an active partner and B is a sleeping partner. A gets 10% of profits for being active, the rest being divided in proportion to their capitals out of a total profit of Rs. 18,000. The money received by B is

  1. Rs. 7200

  2. Rs. 8000

  3. Rs. 9000

  4. Rs. 9600
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total profit = 18000. A gets 10% = 1800. Remaining = 16200. Ratio of capital = 4000:5000 = 4:5. B's share = (5/9) * 16200 = 5 * 1800 = 9000.

Multiple choice

A, B and C enter into a partnership with Rs. 3,50,000, Rs. 3,00,000 and Rs. 1,50,000 resp. A is active partner and gets 30% profit. The remaining profit is divided in proportion to the capital investment. At the end of year A gets Rs. 17,000 more than B and C together. Find total profit.

  1. Rs. 60,000

  2. Rs. 80,000

  3. Rs. 85,000

  4. Rs. 95,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ratio of investments A:B:C = 35:30:15 = 7:6:3. Total parts = 16. A gets 30% profit, remaining 70% is split. A's total share = 0.3P + (7/16)*0.7P = 0.3P + 0.30625P = 0.60625P. B+C share = (9/16)*0.7P = 0.39375P. Difference: 0.60625P - 0.39375P = 0.2125P = 17000. P = 17000 / 0.2125 = 80000.

Multiple choice

Alex, Tom and Edward started a business by investing $800, $1600 and \$2000, respectively. After a quarter, they invested more in the ratio 1 : 4 : 2. After another quarter, they invested more in the ratio 3 : 2 : 3. In the last quarter, the ratio of investments was same as in the 2nd quarter. Also, in the last quarter, the respective amounts of Alex, Tom and Edward were double the respective amounts invested in the 2nd quarter. The total investment of Edward before the 4th quarter was \$1400 more than that of Alex during the same duration. Also, the ratio of Tom's share in the profit to the total profit at the end of the year was 22 : 51. Find the total investment of all three.
  1. $10,200
  2. $20,100
  3. $24,200
  4. $25,200
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This is a complex investment problem. Based on the provided ratio conditions and the profit share, the total investment calculation leads to 10,200.

Multiple choice

Ajay, Ajay's father and Birbal started a business with profit sharing ratio of 3 : 2 : 2; but Ajay's father opted out of the business and then Ajay and Birbal decided to share the profits in the ratio 3 : 2. What is the gaining ratio?

  1. 2 : 3

  2. 3 : 2

  3. 1 : 2

  4. 2 : 1
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Original ratio: A:F:B = 3:2:2. Father leaves, so A:B = 3:2. The gain is the difference in profit share. Ajay's share went from 3/7 to 3/5. Birbal's share went from 2/7 to 2/5. Gaining ratio = (3/5 - 3/7) : (2/5 - 2/7) = (21-15)/35 : (14-10)/35 = 6:4 = 3:2.

Multiple choice

Karan and Arjun started a business by investing Rs. 12,600 and Rs. 12,400, respectively. After 7 months, they added Rs. 1,400 and Rs. 1,600 more, respectively. 1 3 of the total profit earned after a year was donated to Red Cross. If after giving the donation, the difference between the shares of Karan and Arjun is Rs. 2,000, find the total profit earned after the year.

  1. Rs. 4,75,000

  2. Rs. 5,75,000

  3. Rs. 6,75,000

  4. Rs. 7,05,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Karan's capital-time product is 158,200 and Arjun's is 156,800, so their profit ratio is 1582:1568 = 791:784. Their share difference is 7/1575 of the post-donation profit, giving Rs. 450,000 after donation. Since this is 2/3 of the total profit, the total is Rs. 675,000.

Multiple choice

A and B start a small venture by investing Rs. 13,500 and Rs. 18,000, respectively. After 9 months, B withdrew his entire money and X and Y joined the business by investing Rs. 30,000 and Rs. 27,000, respectively. If after a year, a total of Rs. 1,37,500 is obtained as profit, find the total share of B and X together out of total profit.

  1. Rs. 60,000

  2. Rs. 80,000

  3. Rs. 70,000

  4. Rs. 65,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Investment periods: A (12 months), B (9 months), X (3 months), Y (3 months). Ratio of profit = (13500*12) : (18000*9) : (30000*3) : (27000*3) = 162000 : 162000 : 90000 : 81000 = 18 : 18 : 10 : 9. Total parts = 55. Share of B and X = (18+10)/55 * 137500 = 28/55 * 137500 = 28 * 2500 = 70,000.

Multiple choice

Directions: Study the following information carefully and answer the question that follows. Ram, Charan and Rohit are three partners who invested in a joint venture for one full year. The total initial sum invested in the joint venture was Rs. 62,000. After a year of investment, Ram, Charan and Rohit respectively invested 40%, 50% and 60% from their shares of profit in another joint venture for one more year. If the ratio of the investments for the second joint venture for Ram, Charan and Rohit respectively is 2 : 4 : 3, and Ram has invested in the first venture for 5 months, Charan for 8 months and Rohit for 10 months, find the ratio of their initial investments in the first joint venture.

  1. 2 : 1 : 2

  2. 2 : 2 : 1

  3. 1: 1: 2

  4. 1: 2 : 2

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

Profit ratio is proportional to (Investment * Time). Let initial investments be R, C, Ro. Profit shares are proportional to (R*5), (C*8), (Ro*10). The second investment is a percentage of these profits. Given the ratio of second investments (2:4:3), we can work backwards to find the ratio of initial investments.

Multiple choice

A and B started business by investing money in ratio 4 : 5. After 6 months, C joined them by investing Rs. 3,000 more than B. On completion of one year, they shared the profit in ratio 4 : 5 : 3. How much money was invested by A?

  1. Rs. 6,000

  2. Rs. 9,000

  3. Rs. 12,000

  4. Rs. 15,000

  5. Rs. 18,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let A = 4x, B = 5x. C invests (5x + 3000) for 6 months. Profit ratio = (4x*12) : (5x*12) : ((5x+3000)*6) = 48x : 60x : (30x+18000) = 4 : 5 : 3. Solving 48x/60x = 4/5 (consistent) and 60x/(30x+18000) = 5/3 gives 180x = 150x + 90000, so 30x = 90000, x = 3000. A's investment = 4 * 3000 = 12000.

Multiple choice

Directions: The following question consists of three statements I, II and III. You have to determine which of the following statements is/are necessary to answer the question. Ali, Bani and Chaya planned to start a partnership firm. They decided that the profit earned in the business would be proportional to the investment and the duration of investment. What was the profit of Bani if all of them invested the amount for one year and total profit was Rs. x? I. Ali invested Rs. 15,000 more than Chaya. II. Bani invested 150 percent more than Ali and 50% less than Chaya. III. Bani invested 2.5 times the amount invested by Ali and 50% of that invested by Chaya.

  1. Any two of them

  2. Either II or III alone

  3. Any of them

  4. All statements are required

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

Profit is proportional to investment. We need the ratio of investments of Ali, Bani, and Chaya. Statement II gives Bani relative to Ali and Chaya. Statement III gives Bani relative to Ali and Chaya. Either II or III is sufficient to establish the ratio of all three investments.