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