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