Examples of Partnership 3
In this class, We discuss Examples of Partnership 3.
The reader should have prior knowledge of basic examples. Click Here.
Example 1:
A, B, and C enter into a partnership by investing in the ratio of 3: 2: 4.
After one year, B invests another Rs 270000.
After two years, C invests another Rs 270000.
After three years, profits are shared based on the ratio of 3: 4: 5. Find the initial investment of each.
Solution:
Important: Profits are shared based on the investment ratios.
A, B, and C investment is 3x, 2x, and 4x.
(3x * 36): ((2x * 12)+(2x + 270000)*24): ((4x * 24) + (4x + 270000)*12) = 3: 4: 5
108x: (72x + 6480000): (144x + 3240000) = 3: 4: 5
108x/(72x +6480000) = 3/4
x = 90000
A’s investment = 3x = 270000
B’s investment = 2x = 180000
C’s investment = 4x = 360000
Example 2:
A and B are partners in a business. A contributed 1/4 of the capital for 15 months.
B receives 2/3 of the profit. For how long has B’s money been used?
Solution:
Let the total profit be z.
B’s share in the profit = 2z/3
A’s share = z – 2z/3 = z/3
A: B = z/3: 2z/3
A: B = 1: 2
Total capital = x.
((x/4)* 15)/((3x/4)* y) = 1/2
y = (15*2)/3 = 10