Examples of Partnership 4

In this class, We discuss Examples of Partnership 4.

The reader should have prior knowledge of basic examples. Click Here.

Example 1:

A, B, and C thought of themselves in a business venture.

A would invest Rs 6500 for six months.

B invested Rs 8400 for five months.

C invests Rs 10000 for three months.

A wants to be a working member for which he receives 5% of profits.

The profit earned was Rs 7400. Calculate the share of B in the profit.

Solution:

A receives 5% of 7400.

(5/100)*7400 = 370

Balance = 7400 – 370 = 7030

Ratio of their investments = (6500*6): (8400*5): (10000*3)

= 13: 14: 10

B’s share = (14/37)*7030 = 2660

Example 2:

Three partners shared the profit in a business in the ratio 5: 7: 8.

They had partnered for 14 months, eight months, and seven months respectively.

What was the ratio of their investments?

Solution:

Let their investments be x, y, and z.

14x: 8y: 7z = 5: 7: 8

(14x/8y) = 5/7

y = 7x/4

14x/7z = 5/8

z = 16x/5

x: y: z = x: 7x/4: 16x/5

= 20: 35: 64