Solved Questions of Partnership
1. Three friends John, David, and Michael, decided to start a business together. They invested $12,000, $10,000, and $8,000 respectively. What is the ratio of John's investment to the total investment?
Solution: To find the ratio of John's investment to the total investment, we need to divide John's investment by the total investment and express it as a fraction. The total investment is $12,000 + $10,000 + $8,000 = $30,000.
Therefore, the ratio of John's investment to the total investment is $12,000/$30,000 = 2/5.
2. Two partners, Alice, and Bob started a business together. Alice invested $20,000 and Bob invested $30,000. They agreed to divide the profit in the ratio 3:2. If the profit for the first year was $10,000, how much did each partner receive?
Solution: To find the amount of profit each partner received, we need to multiply the profit by the ratio of their investment.
Alice's ratio is 3:2 and Bob's ratio is 2 : 3.
Therefore, Alice's share of the profit is 3/5 of $10,000 = $6,000
Bob's share is 2/5 of $10,000 = $4,000.
3. Four partners, A, B, C, and D, started a business together. An invested $10,000, B invested $15,000, C invested $20,000, and D invested $25,000. They agreed to divide the profit into the ratio of their investments. If the profit for the first year was $50,000, how much did each partner receive?
Solution: To find the amount of profit each partner received, we need to multiply the profit by the ratio of their investment.
The total ratio of their investments is 10: 15: 20: 25.
Therefore, A's share of the profit is 10/70 of $50,000 = $7142.86,
B's share is 15/70 of $50,000 = $10714.28,
C's share is 20/70 of $50,000 = $14285.71,
D's share is 25/70 of $50,000 = $17857.14.
4. Two friends, Alex, and Ben decide to start a business together. Alex contributes $50,000 and Ben contributes $30,000. They agree to divide the profits and losses equally. After one year, the business earns a profit of $20,000. How much profit does each partner receive?
Solution: To find the amount of profit each partner received, we need to multiply the profit by the ratio of their investment.
The total ratio of their investments is 5 : 3
Therefore, Alex's share of the profit is 5/8 of $20,000 = $12500
Ben's share is 3/70 of $20,000 = $7500
5. Three friends, Alice, Bob, and Carol, decide to start a partnership business. Alice contributes $40,000, Bob contributes $30,000, and Carol contributes $20,000. They agree to divide the profits into the ratio of their contributions. After one year, the business earns a profit of $25,000. How much profit does each partner receive?
Solution: The total capital contributed by all partners is $40,000 + $30,000 + $20,000 = $90,000.
To determine the ratio of their contributions, we divide each contribution by the total capital:
Alice’s share = $40,000 / $90,000 = 4/9,
Bob’s share = $30,000 / $90,000 = 3/9 = 1/3,
Carol’s share = $20,000 / $90,000 = 2/9.
To find out how much profit each partner will receive, we multiply the ratio by the total profit: Alice’s share = $40,000 / $90,000 x $25,000 = 4/9 x $25,000 = $11,111.11,
Bob’s share = $30,000 / $90,000 x $25,000 = 1/3 x $25,000 = $8,333.33, Carol’s share = $20,000 / $90,000 x $25,000 = 2/9 x $25,000 = $5,555.56.
Thus, Alice will receive $11,111.11, Bob will receive $8,333.33, and Carol will receive $5,555.56 as profit.
Practice Questions on Partnership
1. In a partnership business, A and B invested $5000 and $7000 respectively. What is the total capital of the partnership business?
a) $12000
b) $17000
c) $22000
d) $27000
Answer: a) $12000
2. A and B entered a partnership business. An invested $3000 for 6 months and B invested $5000 for 4 months. How much did B invest for each month?
a) $1250
b) $1350
c) $1450000
d) $1500
Answer: a) $1250
3. A and B are partners in a business. An invested $8000 for 4 months and B invested $6000 for 3 months. What is the ratio of A's investment to B's investment?
a) 14:13
b) 16:9
c) 12:13
d) 11:14
Answer: b) 16:9
4. A and B are partners in a business. An invested $4000 for 3 months and B invested $5000 for 2 months. What is the total investment of the partnership business?
a) $9000
b) $9500
c) $10000
d) $11000
Answer: c) $9000
5. A and B are partners in a business. An invested $5000 for 6 months and B invested $3000 for 4 months. What is the total investment of B for each month?
a) $1000
b) $2000
c) $3000
d) $4000
Answer: a) $1000
6. A and B started a business by investing $8,000 and $10,000, respectively. If the total profit at the end of the year was $27,000, what is A's share of the profit?
a) $9000
b) $10500
c) 11000
d) $12000
Answer: d) $12000
7. P started a business with $1000. Q joined him after 2 months with $2000. R put a sum of $3000 in the business for 4 months only. At the end of the year, the business gave a profit of $6600. What is the profit of B?
a) $2000
b) $2500
c) $3000
d) $3500
Answer: c) $3000
8. A and B are partners in a business. An invested $5000 for 5 months and B invested $6000 for 4 months. What is the ratio of A's investment to B's investment?
a) 13:14
b) 25:24
c) 15:16
d) 16:17
Answer: b) 25:24
9. A and B are partners in a business. An invested $7000 for 6 months and B invested $8000 for 5 months. What is the total investment of the partnership business?
a) $15000
b) $12000
c) $17000
d) $18000
Answer: b) $15000
10. A and B are partners in a business. An invested $9000 for 7 months and B invested $10000 for 6 months. What is the total investment?
a) $10250
b) $10300
c) $19000
d) $20000
Answer: c) $19000
