Calculate a partner’s share of profit in a business

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Posted: Posted Date – 11:35 PM Wed – 19 Oct 22

Calculate a partner's share of profit in a business

This is a continuation of the last article focused on the subject of profit and loss. Here are practice questions along with solutions that will help you in your preparation for state government recruiting jobs.

1. A, B and C started a business by investing 40,500, 45,000 and 60,000 respectively. After 6 months, C withdrew 15,000 while A invested 4,500 more. In an annual profit of 56,100, C’s share will exceed A’s by
a) 900 b) 1900 c) 29000 d) 3900
Answer: D
The solution: Ratio of equivalent capital of A, B and C for 1 month
= (40500 × 6 45000 × 6) : (45000 × 12) : (60000 × 6 45000 × 6)
= (405450): (450 × 2): (600450) = 855:900:1050
= 171:180:210
= 57:60:70
Sum of ratios = 57 60 70
= 187
Required difference
= 70 – 57 / 187 × 56100
= 13/187 × 56100
= 3900

2. A, B and C started a business and their investment ratio was 5:4:3. After 4 months B invested 1000 more and after 8 months C invested 2000 more. After one year, the rate of profit was 15:14:11, so the investment of C at the start was ?
a) 3000 b) 4000 c) 5000 d) 6000
Answer: a
The solution:
Initial investment:
A = 5x
B = 4x
C=3
Ratio of their equivalent capital for 1 month
= 5x × 12 : (4x × 4 (4x 1000) × 8) : (3x × 8 (3x 2000) × 4)
= 15x : (12x 2000) : (9x 2000)
 15x / (12x 2000) = 15/14
=>;14x = 12x 2000
=> ; 2x = 2000
=> ; x = 1000
 Investment of C = 3000

3. A starts his business with 3500 and after 5 months B joins A as a partner. After one year, the profit is divided according to the ratio 2:3. What is B’s contribution to the capital?
a) 8000 b) 8500 c) 9000 d) 7500
Answer:vs
The solution:
A’s investment of 3500 is for 12 months
B’s investment (ie x) is only 7 months.
At the end of the year, the profit is divided in the ratio 2:3 and it must be equal to the ratio of the
product, (amount × time)
where x = 12 × 3500 / 7x = 2/3
where x = 12 × 3500 / 7x × 3/2
where x = 90000
B’s investment is 9000

4. A total profit of 3600 should be divided between A, B and C so that A:B=5:4 and B:C=8:9. C’s share of the profit is ?
a) 1800 b) 1500 c) 1000 d) 1200
Answer: D
The solution:A:B=5:4=10:8
B:C=8:9
A:B:C=10:8:9
Sum of ratios = 10 8 9 = 27
Share of C = 9/27 × 3600 = 1200

To be continued…
M Venkat
Director
MVK Publications
Dilsukhnagar

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