JV Global Services LLP (Naxeva Group) – Student handout

PARTNERSHIP
When more than one person run a business jointly, then they are called Partners and the Deal between
them is Partnership
Working Partner: A partner who manages the business is known as a working partner.
Sleeping Partner: A partner who simply invests the money in the business is known as a sleeping
partner.
Two cases of Profit/loss sharing in partnership
1. If A and B invest x and y respectively, then
(A’s Share of Profit/loss): (B’s Share of Profit/loss) = x: y
2. If A invests x for the time period of p and B invests y for the time period of q, then
(A’s Share of Profit/loss): (B’s Share of Profit/loss) = xp: yq
Exercise problems:
1. Raj invested Rs 76000 in a business. After few months Ravi joined him and invests Rs 57000. At the
end of the year, both of them share the profits at the ratio of 2:1. After how many months Ravi
joined Raj?
a. 4 b. 7 c. 8 d. 9
2. P, Q and R enter into a partnership and their shares are in the ratio 1/2: 1/3: 1/4. After 2 months, P
withdraws half of his capital and after 10 months, a profit of Rs. 378 is divided among them. What is
Q's share?
a. 144 b. 169 c. 225 d. 339
3. Arun, Nagesh, Charan started a business with their investments in the ratio 1:3 :5. After 4 months,
Arun invested the same amount as before and Nagesh as well as Charan withdrew half of their
investments. The ratio of their profits at the end of the year is:
a. 1: 2: 3 b. 3: 4: 15 c. 3: 5: 10 d. 5: 6: 10
4. Arvind started a business investing Rs. 45,000. After 3 months, Pruthvi joined him with a capital of
Rs. 60,000. After another 6 months, Ramesh joined them with a capital of Rs. 90,000. At the end of
the year, they made a profit of Rs. 16,500. Find the share of each.
a. 2: 1: 1 b. 2: 2: 1 c. 1: 2:2 d. 1: 2: 1
5. Ram started a business with 20, 000. Laxman joined him 4 months later with 30, 000. After 2 months
Ram withdrew 5,000 of his capital and 2 more months later, Laxman brought in 20, 000 more. At the
end of the year what should be the ratio in which they should share the profits?
a. 21: 32 b. 23: 31 c. 27: 31 d. 32: 21
6. A and B started a business with initial investment in the respective ratio of 3: 1. After four months
from the start of the business, A invests Rs. 2000 more and after two more months B invested Rs.
6000 more. If A's profit share is double of B's share after a year, then what was A's initial investment
(in Rs.)?
a. 16,000 b. 15,000 c. 14,000 d. 12,000
7. P started a business with 40, 000. After 2 months Q joined him with 60, 000. R joined them after
some more time with 1, 20,000. At the end of the year, out of a total profit of 3, 75, 000, R gets 1,50,
000 as his share. How many months after Q joined the business did R join?
a. R joined the business 4 months after, Q joined the business.
b. R joined the business 2 months after, Q joined the business.
JV Global Services LLP (Naxeva Group) – Student handout

c. R joined the business 6 months after, Q joined the business.

d. R joined the business 8 months after, Q joined the business.
8. Praveen started a business with 20,000. Raju joined him 4 months later with 30,000. After 2 months
Praveen withdrew 5,000 of his capital and 2 more months later, Raju brought in 20, 000 more. At
the end of the year what should be the ratio in which they should share the profits?
a. 32: 21 b. 21: 32 c. 20: 31 d. 31: 20
9. X and Y starts a business with different capitals. X was to get 15% of the profit as salary and the rest
was to be divided in the ratio of their investments. Had the entire profit been distributed in the ratio
of their investments, Y would have got 1350 more than what he actually got. What is Y’s actual
share of the profit?
a. 7,630 b. 7,650 c. 7,680 d. 7,660
10. P, Q, R starts a partnership. The capital of P, Q, R are in the ratio of 10:9:6, and the time period of P:
Q is in the ratio of 2:3. Q gets 10, 800 shares out of a total profit of 26, 000. If P’s capital was in the
business for 8 months, for how many months was R’s capital there?
a. 15 b. 12 c. 18 d. 9
11. Rama, Laxman, and Bharath start a business with 30K, 40K, and 50K respectively. Rama stays for the
entire year. Laxman leaves the business after two months but rejoins after another 4 months but
only with 3/4th of his initial capital. Bharath leaves after 3 months and rejoins after another 5
months but with only 4/5 of his capital. If the year-end profit is 27,900, how much more than
Laxman did Bharath get?
a. 1800 b. 1700 c. 1500 d. 1200
12. Anitha and Anjali starts a business with different capitals. Anitha was to get 15% of the profit as
salary and the rest was to be divided in the ratio of their investments. Had the entire profit been
distributed in the ratio of their investments, Anjali would have got 1350 more than what he actually
got. What is Anjali’s actual share of the profit?
a. 7,935 b. 7,750 c. 7,850 d. 7,650
13. Ajay starts a small business by investing a certain sum of money. Kiran joins Ajay after three months
from the start of the business by investing 1.5 times Ajay’s investment. Three months after Kiran
joined the business, Chandru joins Ajay and Kiran by investing half of Ajay’s Investment. It was
agreed that the working partner would receive 10% of the profit and the share according to the
investment proportion from the rest of the profit. If total profit at the end of the year was Rs. 23750,
how much will Ajay, being the only working partner receive.
a. Rs. 11,375 b. 10,000 c. 12,375 d. 11,275
14. A starts a small business by investing a certain sum of money. B joins A after three months from the
start of the business by investing 1.5-time A’s investment. Three months after B joined the business,
C joins A and B by investing half of A’s investment. It was agreed that the working partner would
receive 10% of the profit and the share according to the investment proportion from the rest of the
profit. If total profit at the end of the year was Rs. 23750, hoe much will A, being the only working
partner receive?
a. Rs. 11,375 b. Rs. 11,875 c. 12,375 d. 12,875