Partnership Questions are an essential segment of the Quantitative Aptitude section. A candidate preparing for the CAT, IBPS, and other banking examinations must know how important it is to score well in these questions. These questions are repeated almost every year, thus CAT aspirants can obtain a good score if solved carefully and efficiently. We have curated a detailed article below to help you in the learning process. This blog contains the concept of partnership, types of partnerships & sample partnership problems.
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Meaning & Concept of Partnership Questions
A partnership means when two or more individuals join hands with a common aim to attain benefits & profits. Each partner invests their time, money, or official documents to help the partnership firm to reap advantages. zSome major points associated with the concept of Partnership Questions:
- A person who invests only money is a Sleeping Partner.
- A person who invests money and manages the business in a Working Partner.
- When two or more individuals join hands to start a venture, it is known as an Association Business.
- Benefits gained by each partner are distributed among them in some prefixed proportion or the proportion of their venture.
- The proportion of investments is equal to the profit and losses in the corresponding ratio of investment.
Types of Partnerships & Short Tricks
There are mainly two types of partnerships i.e Simple and Compound partnerships. The details of them are listed below:
In this partnership, capital stays in the business for the same duration as the resources. Also, the profit is distributed in proportion to their contributed resources.
Rule 1: Simple Partnership Formula
If X and Y contributed Rs. A and B respectively for 1 year in the business, their profit and loss at that time will be calculated as –
X’s profit or loss: Y’s profit or loss = A : B
In this partnership, the capital stays for different periods by different investors. Also, the proportion of profit or loss is ascertained by duplicating the capital contributed with the unit of time (generally months).
Rule 2: Compound Partnership Formula
For eg, A and B are partners
P1 = A’s profit
C1 = A’s capital
T1 = Time period for which A contributed his capital
P2 = B’s profit
C2 = B’s capital
T2 = Time period for which B contributed his capital
The profits and loss will be calculated as – P1 : P2 = C1 x T1 : C2 x T2
Solved Samples of Partnership Questions for CAT Exam
Q. A invested Rs 76000 in a business. After a few months B joined him and invested Rs 57000. At the end of the year, Both A and B share the same profits as 2 : 1. From how many months did B join A?
Solution: Let’s take X as B’s months.
A = Rs 76000 for 12 months B = Rs 57000 for X months
Now, 76000 / 12 = 57000 / X = 2 : 1
76 x 12 / 2 = 57x
X = 8
So, B invested his money for 8 months.
Q. X, Y, and Z shared profits in the ratio of 5:7:8. Their partnership lasted for 14 months, 8 months, and 7 months respectively. What was the ratio of their investments?
Solution: Simply multiply profit sharing ratio with investment ratio to get investment amount.
Let X is the total investment,
14x = 5
8x = 7
7x = 8
Total ratio: 20 : 49 : 64
Q. Ram and Shyam started a business venture by investing Rs. 120000 and Rs.135000 respectively. Find the share of each of them out of an annual profit of Rs. 35700.
Solution: Ratio of their Share = 1,20,000 : 1,35,000 = 8 : 9
Sum of their ratio 8 + 9 = 17
Ram’s share: 35700 x 8/17 =Rs. 16800
Shyam’s share: 35700 x 9/17 = Rs. 18900
Q. A and B invested Rs.1500 and Rs.2000 respectively in a firm. After 4 months, they admit C who contributed Rs.2250. B withdraws his contribution after 9 months. What would be B’s share if the profit at the end of the year was Rs. 900?
Solution: A invested for 12 months, C invested for 4 months which means B investment = 8 months.
A : B : C = 1500 x 12 : 2000 x 9 : 2250 x 8 = 180 : 180 : 180
B’s share will be [1 / (1 + 1 + 1)] = ⅓ = 900 = Rs. 300
Q. P began a business with Rs.450. Then, after few months R joined him with a capital of Rs.300. In the end, the profits were distributed in the ratio of 2:1. After how long did R join?
Solution: P = 450 R = 300
Time : x = 12, y = n
P1 : P2 = C1 x T1 : C2 x T2
(450×12) / (300n) = 2/1
N = 9 months
Worksheet on Partnership Questions for SSC & other bank exams
(A) 3: 5
(B) 3: 6
(C) 15: 25
(E) None of these
(A) Rs. 10,500, Rs. 13,500, Rs. 16,500
(B) Rs. 12,500, Rs. 13,000, Rs. 16,000
(C) Rs. 11,000, Rs. 13,000, Rs. 15,500
(D) Rs. 11,500 Rs. 14,500 Rs. 16,500
(A) Rs. 9472
(B) Rs. 12,628
(C) Rs. 18,050
(D) Rs. 18,942
(A) Rs. 9425
(B) Rs. 11,250
(C) Rs. 13,500
(D) Rs. 15,000
(E) None of these
(A) Rs. 7500
(B) Rs. 9500
(C) Rs. 9650
(D) Rs. 10,500
(E) None of these
Previous Year 2020 Partnership Questions
Thus, we come to an end with our article on Partnership Questions and hope it provided you with a better understanding. It is advised to take expert guidance before selecting a stream or course. Leverage Edu is a one-stop solution for all the admissions and career-related queries, reach out to us by booking a free E-meeting session.