Problems on Numbers
October 5, 2022
Introduction to Probability
October 5, 2022About this post
The aim of this topic is to help you solve problems on partnership. The first section in this topic is an introduction to problems where we have shared some important points and tips and partnership. The exercises contain solved question and answers on partnership. When solving exercises, we recommend you to try solving the problems on your own, then view the solution.
By the end of this post, you will learn to solve the following types of problems:
- A and B start a business by investing certain amount of money. B leaves the business few months after starting the business. In what ratio should the profit generated at the end of the year be shared between A and B.
- A starts a business with Rs. X. B joins after m months investing Rs. Y. C invests Rs. Z for n months. If at the end of the year, an amount of Rs. C, which is P% of the profit goes to charity. Find A’s share.
Introduction to Partnership
Partnership :
When more than one person run a business jointly, then the persons involved in the business are called partners and the agreement between them is called partnership.
Sleeping Partner :
A partner who only is an investor in the business.
Working Partner :
A partner who manages the business is the working partner.
Key Points
- When the partners invest in the business for the same amount of time, then the gain or loss is distributed in the ratio of their investments.
If A and B enter into a partnership, such that they invest their money for equal periods, then
A's share : B's share = Capital of A : Capital of B
- When the partners invests in the business for different amount of time, then the gain or loss is distributed based on the capital invested and the time for which it is invested, as shown in the example below
If A and B enter into a partnership, such that they invest their money for different periods of time, then
A's share : B's share = Capital of A x Time period of A : Capital of B x Time Period of B
