Examples of Partnership 1
In this class, We discuss Examples of Partnership 1.
The reader should have prior knowledge of the basics of ratios. Click Here.
Example 1:
A, B, and C started a business by investing 120,000, 135,000, and 150,000, respectively.
Find the share of each out of an annual profit of 56,700.
Solution:
The ratio of shares is based on the ratio of investment.
120000: 135000: 150000 = 8: 9: 10
A’s share = 56700 * (8/27) = 16800
B’s share = 56700 * (9/27) = 18900
C’s share = 56700 * (10/27) = 21000
Example 2:
Alfred started a business investing Rs 45000.
After three months, peter joined him with a capital of Rs 60000.
After another six months, Ronald joined them with a capital of Rs 90000.
At the end of the year, they made a profit of Rs 16500. Find the share of each.
Solution:
Alfred invested for 12 months.
Peter invested for nine months.
Ronald invested for three months.
Ratio of their investments = 45000 * 12: 60000 * 9: 90000 * 3
2: 2: 1
Alfred’s share = (2/5)* 16500 = 6600
Peter’s share = (2/5)* 16500 = 6600
Ronald’s share = (1/5) * 16500 = 3300