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

In a culinary venture named "Flavors Unleashed", five partners came together as a group. The partners are named Grace, Henry, Isabella, Jack, and Lily. Henry made the investment by contributing \$12,000 to get the restaurant up and running. Impressed by Henry's dedication, Grace decided to invest 25% more than Henry's investment. Isabella, a renowned chef, joined the partnership by investing 70% of the combined investment of Henry and Grace. Motivated by Isabella's culinary expertise, Jack invested \$2,400 less than Isabella's investment. Lily, a passionate foodie, became a partner after 6 months and invested an amount equal to the average of the investments made by Grace, Isabella, and Jack. The restaurant achieved a total profit of $96,800 over a period of 10 months. What is the approximate average profit earned by all the partners except Lily?
  1. $19,870
  2. $20,470
  3. $21,850
  4. $22,450
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice

Anil, Bobby, and Chintu jointly invest in a business and agree to share the overall profit in proportion to their investments. Anil's share of investment is 70%. His share of profit decreases by Rs. 420 if the overall profit goes down from 18% to 15%. Chintu's share of profit increases by Rs. 80 if the overall profit goes up from 15% to 17%. The amount, in INR, invested by Bobby is

  1. 2000

  2. 2400

  3. 2200

  4. 1800
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let total investment be T. Anil's investment is 0.7T. Profit change for Anil: 0.7T * (0.18 - 0.15) = 420, so 0.7T * 0.03 = 420, T = 420 / 0.021 = 20000. Chintu's share of profit increase: C * (0.17 - 0.15) = 80, so C * 0.02 = 80, C = 4000. Bobby's investment = Total - Anil - Chintu = 20000 - 14000 - 4000 = 2000.

Multiple choice

A and B start a small scale business together. A invests Rs. 15,000 for the entire duration of the business, while B invests for only half of the duration. At the end of the year, the total profit is Rs. 90,000. If A receives Rs. 36,000 as his share of profit, what is the amount invested by B?

  1. Rs. 15,000

  2. Rs. 25,000

  3. Rs. 30,000

  4. Rs. 45,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A invests 15000 for 12 months (180000 unit-months). B invests X for 6 months (6X unit-months). Profit ratio = 180000 : 6X = 30000 : X. A's share = 36000, B's share = 90000 - 36000 = 54000. Ratio 36000/54000 = 2/3. So 30000/X = 2/3, 2X = 90000, X = 45000.

Multiple choice

Read the following case study and answer question. (Q41-Q45) Deepali, Nimisha and Sonam were partners in a firm sharing profit in the ratio of 5:3: 2. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was 2 : 3, On Nimisha's retirement, the goodwill of the firm was valued at ₹1,20,000. Q43. Using the information given in the case study, calculate Deepali’s amount of sacrifice or gain in Goodwill

  1. (a) ₹12,000 sacrifice

  2. (b) ₹24,000 gain

  3. (c) ₹36,000 sacrifice

  4. (d) ₹48,000 gain
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice

A and B share profits and losses in the ratio of 2: 1. They admit C as partner with th share in profits with a guarantee that his share of profit shall be at least R50,000. The net profit of the firm for the year ending March 318, 2022 was 12,40,000, Determine C's share in profits. (a) €50,000 (b) €60,000 (c) 540,000 (a) 30,000 Read the passage given below and answer the question: Direction 041. To 045. Teesha and Ritik are partners in a firm without any agreement. Due to lack agreement they realised that there was contradiction between then on one issue or the other so they decided to enter into a written agreement with regard to different terms and conditions. As per the agreement they will be sharing profits in the ratio of 3: 2. At the beginning of 2022-2023 ie. 18 April 2022 their capital were €60,000 and 240,000 respectively. They earn a profit of 230,000 for the year ending 31t March 2023. According to agreement, both Teesha and Ritik are entitled to $1,000 per month as salary and 5% p.a. interest on their capital. They are also to be charged an interest of 5% p.a. on their drawings, which was 112,000 for Teesha and 18,000 for Ritik for the year 2022-2023. Determine the amount of interest on drawing to be charged from Ritik. （a）¥200 （b）¥300 (c) 3400 (d) 2600

  1. （a）¥200

  2. （b）¥300

  3. (c) 3400

  4. (d) 2600
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice

Vikas and Rahul are partners who shares profits in the ratio of 2:3. They admitted Sunil a share in future profits who brings 37,500 as his share of Goodwill. Half of which is withdrawn by sacrificing partners. Record journal entry for goodwill withdrawn by partners.

  1. Premium for Goodwill A/c Dr 37,500 To Vikas'a Capital A/ 15,000 To Rahul's Capital A/ 22,500

  2. Vikas's Capital A Dr. 7,500 Rahul's Capital A/c Dr 11,250 To Bank A/c 18,750

  3. Bank A/c Dr 18,750 To Vikas's Capital A/c 7,500 To Rahul's Capital A/c 11,250

  4. Vikas capital A/c Dr 15,000 Rahul's Capital A/c Dr 22,500 To Bank 37,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Half of the goodwill, Rs. 37500/2 = Rs. 18750, is withdrawn from the business. It is borne in the sacrificing ratio 2:3, giving Rs. 7500 for Vikas and Rs. 11250 for Rahul, so both capital accounts are debited and Bank is credited.

Multiple choice

A And B were partners sharing profits in the ratio of 2:1. C is admitted for the 1/4thshare of profits, who brings 20,000 as capital. After all adjustments related to goodwill, revaluation of assets and reassessment of liabilities etc. Capital of A and B are 43,000 and 15,000 respectively: It is agreed that partners capitals should be according to the new profit sharing ratio. Determine the new capital of B

  1. 20,000

  2. 40,000

  3. 80,000

  4. 45,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

C brings 20,000 for 1/4 share. Total capital = 80,000. Remaining 3/4 share is 60,000. A and B share in 2:1, so B's share is 1/3 of 60,000 = 20,000.

Multiple choice

Two companies A and B invest Rs. 20 lacs and Rs. 35 lacs respectively in a joint venture with the agreement that the profit or loss will be shared in the same ratio as the amount invested. If company B gets a profit of Rs. 14 lacs, the total profit of the joint venture is:

  1. 26 lacs

  2. 23 lacs

  3. 22 lacs

  4. 21 lacs

  5. 18 lacs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Investment ratio A:B = 20:35 = 4:7. Profit is shared in the same ratio. B's profit = 7 parts = 14 lacs. 1 part = 2 lacs. Total profit = 4 + 7 = 11 parts = 11 * 2 = 22 lacs.

Multiple choice

A, B, and C entered into a partnership by investing certain amounts for 12 months, X months, and (12 - X) months, respectively. Find the value of X. Statement I: B invested 75% more than A, and C invested twice the amount invested by B. Statement II: At the end of the partnership, the total profit earned was Rs. 900, and B received Rs. 150 as profit share. Statement III: The ratio of B's share of the profit to the total profit is 1 : 6.

  1. Statements I and II taken together are necessary to answer the question

  2. Either statement I and II together or statement I and III together sufficient to answer the question

  3. All the three statements taken together are necessary to answer the question

  4. Statements II and III together are necessary to answer the question

  5. Statements I and III together are necessary to answer the question
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Profit share ratio is proportional to (Investment * Time). Let A's investment be 'a'. B = 1.75a, C = 3.5a. Profit shares: A: 12a, B: X * 1.75a, C: (12-X) * 3.5a. Statement I gives the ratio of investments. Statement III gives B's share relative to total. Together, they allow solving for X. Statement II is redundant if III is used, but I and II also provide enough info.

Multiple choice

R, Q and P start a business together with initial investment of Rs. 20000, Rs. 30000 and Rs. 25000 respectively. After 8 months, R and Q take out Rs. 10000 each from the investment. Total profit earned at the end of the year is Rs. 16400. Find out P's share of profit.

  1. Rs. 5500

  2. Rs. 6500

  3. Rs. 4000

  4. Rs. 6000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Investment-months: R: (20000*8 + 10000*4) = 200,000. Q: (30000*8 + 20000*4) = 320,000. P: (25000*12) = 300,000. Ratio R:Q:P = 20:32:30 = 10:16:15. P's share = 16400 * (15 / 41) = 6000.

Multiple choice

Three partners X, Y and Z started their business by investing ₹40,000, ₹38,000 and ₹30,000, respectively. After 6 months, X and Z made additional investments of ₹20,000 and ₹15,000 respectively, whereas Y withdrew ₹8,000. Find the share of Y (in ₹) in the total profit of ₹38,880 made at the end of the year.

  1. 10,950

  2. 10,880

  3. 9,800

  4. 10,200
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

X: 40k*6 + 60k*6 = 600k. Y: 38k*6 + 30k*6 = 408k. Z: 30k*6 + 45k*6 = 450k. Total ratio = 600:408:450 = 100:68:75. Total parts = 243. Y's share = 68/243 * 38880 = 68 * 160 = 10880.