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Published on July 17th, 2013 In category Maths

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Solving Partnership type problems

Here we will learn how to solve the problems based on the capital invested in partnership firms, these type of problems are sometimes asked in the competitive exams. 

The partnership problems are of 2 types simple partnership and compound partnership. 

Simple partnership: When the partners have invested capital for the same period

Compound partnership: When partners have invested capital for the different periods and the profit is divided in the proportion of the time and capital invested.

Lets look at some simple formulae  to solve these kind of problems. Lets assume there are three partner; Ram (X) , Radha (Y)  & Shyam (Z)

If  M, N and O are investment amount by the respective Ram, Radha and Shyam then total investment from all partners is (M + N + O), the proportion of profit will be similar to amount invested. Hence

  • Ram’s share = Profit x [Ram investment (M) /total investment (M + N + O) ]
  • Radha’s Share = Profit x [ N / (M + N + O) ]
  • Shyam’ Share = Profit x [ O/ (M + N + O) ]

Since the period of investment is same, this is simple partnership

If case Ram has invested for ‘a’ months, Radha for ‘b’ month and Shyam for ‘c’ months, the proportion for investment will change as follows

Ram’s Investment =  M x a, Radha’s investment = N x b and Shyam’s investment = O x c

The formula for proportion will also change accordingly

  • Rams’s Share = Profit x a [ M/ (M+N+O)]
  • Radha’s Share= Profit x b [N / (M+N+O)]
  • Shaym’s Share = Profit x c [O/ (M + N + O)]

 

Lets practice this through a quiz

Quiz on the Partnership Problems

This quiz is on to test the concept of the partnership contribution, it includes questions on multiple choice format. There is only one correct answers and correct answers are explained at the end.
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