Partnership: Meaning, concepts & Questions and Answers

Safalta Expert Published by: Saksham Chauhan Updated Wed, 23 Mar 2022 05:43 PM IST

Highlights

A partnership is formed when a business is operated by two or more people, and the people who run the firm are referred to as partners. We're working on the following four cases together.Every partner contributes either time or money to assist the partnership company succeed. Check here at safalta.com
 

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A partnership is formed when a business is operated by two or more people, and the people who run the firm are referred to as partners. We're working on the following four cases together.

Every competitive exam, such as SBI Clerk Pre, IBPS Clerk Pre, IBPS RRB Pre, Railways, UIIC, LIC, NIACL, NICL, OICL, and others, requires knowledge of the partnership issue. 1-2 questions appear in Banking Exams every year.
A partnership is formed when two or more persons join forces to achieve a common aim of profit. Every partner contributes either time or money to assist the partnership company succeed.

There are two sorts of collaborations:

1. Simple partnership - A simple partnership is one in which all partners spend their capital (money) for the same amount of time.

2.

Source: Safalta.com

Compound partnership
- A compound partnership is formed when all of the partners spend their capital (money) for various lengths of time.


Types of Partners
The obligations and functions of all partners in a business are not the same. In a partnership, there can be a variety of partners. Let us study the types of partners and their rights and duties.
 
Active Partner: As the term implies, he participates actively in the firm's operations. He adds to the firm's capital, shares in its profits, and participates in its day-to-day operations. In the firm, his culpability will be limitless. And he frequently acts as a representative for the other partners.
 
Secret Partner:The partner's affiliation with the firm isn't made public in this case. He will not represent the company to any other parties or agents. Aside from it, his involvement in capital, profits, management, and liability will be identical to that of the other partners.
 
Nominal Partner:This is only a term for a companion. He gives the firm permission to utilise his firm's name and associated goodwill. He does not, however, contribute to the capital and hence does not partake in the profits. He is not involved in the firm's operations. His liability, on the other hand, will be limitless.
 
Partner by Estoppel: If a person makes it appear that they are partners in a company via their actions or behavior and he does not rectify them, he becomes a partner through estoppel. This partner, too, will be subject to infinite responsibility.
 
Features of Partnership:
Following are the few features of a partnership:
 
1. Partnership Agreement: A partnership is an arrangement of two or more persons formed by an agreement or contract. The agreement (accord) serves as the foundation for the partnership between the parties. This type of agreement is written down. An oral agreement is legally binding on both parties. It is usually preferable if the partners have a copy of the written agreement in order to avoid misunderstandings..
 
2. Two or More People: To form a partnership, there must be at least two (2) people who share a shared aim. To put it another way, the bare minimum of partners in a business might be two (2). However, the maximum number of persons they can have is limited.
 
3. Profit Sharing: Another important aspect of a partnership is the agreement between partners to share the profits and losses of a trading firm. The Partnership Act, on the other hand, defines partnership as a group of persons who have agreed to share the profits of a firm, with the sharing of losses implicit. As a result, it is critical to share profits and losses.
 
4.Profit Motivation: It is critical for a company to operate in some capacity and to have a profit motive.
 
5. Joint Business: The partners are both the owners and the agents of their company. Any action taken by one partner might have an impact on the other partners and the company. This moment, it may be stated, serves as a relationship exam for all partners.
 
6. Unlimited Liability: Every member in a partnership is personally liable in an unlimited amount.
 

Questions And Answers
 
Question 1
Nidhi started a business by investing capital of Rs. 5,00,000. Ria joined her aer 3 months with an investment of Rs. 2,00,000. After another 3 months, Roma joined the business with an investment of Rs. X. In a year, the total profit in the business is Rs. 1,38,000. If Nidhi gets Rs. 60,000 as her share of profit, what is the value of X?

Option 1: 15,00,000 
Option 2: 16,00,000 
Option 3: 12,00,000 
Option 4: 10,00,000

Answer:
4: 10,00,000

Explanation:
⇒ The share in the profit of the business is in proportion with the product of the capital and the time for which it is invested.
⇒ Share of Nidhi in profit : Share of Ria in profit : Share of Roma in profit =500000×12:200000×9:X×6
= 1000000 : 300000 : X
⇒ Share of Nidhi in profit = 138000 × {1000000/(1300000 + X)}
⇒ 60000 = 138000 × {1000000/(1300000 + X)} ⇒ 1300000 + X = 2300000
∴ X = Rs. 10,00,000

Question 2
A and B started a business for a certain period of time. The salary of A turns out equal to % of the profit  per his salary was paid. If A finally received a total of Rs 32000 aer the remaining profit was split equally between A and B. Find the total profit made by A & B?

Option 1: Rs 51200
Option 2: Rs 54200
Option 3: Rs 52200 
Option 4: Rs 53200

Answer:
1: Rs 51200

Explanation:

 
Question 3
A and B entered into partnership investing Rs 16000 and Rs 12000 respectively. Aer three months, A withdraw Rs 7000 while B reinvested Rs 7000 more and aer three more months, C joins the business with a capital of Rs 21500. If profit share of B exceeds that of C, by Rs 4680, find share of C?
Option 1: Rs 7940
Option 2: Rs 7740 
Option 3: Rs 7640
Option 4: Rs 7840
 
Answer: 
2: Rs 7740
 
Explanation:
Ratio of profit A:B:C=16000×3+9000×9:12000×3+19000×9:21500×6 ∴ Difference between share BandC=69-43=26
So 26 unit represents 4680 Share of C = 43/26 × 4680 =7740
 
Question 4
In a partnership, A invest 16.66% of the capital for 1/6 of the time, B invest 1/3 of the capital for 33.33% of the time and C invest rest of the capital for the whole time. Find the difference in the share of B and C from the total profit of Rs 11500?
Option 1: 8400 
Option 2: 6300 
Option 3: 9100 
Option 4: 7000
 
Answer: 
4: 7000
Explanation:
Let total capital be 6 unit & Total time be 12 unit Profit = Capital × Time 1×2:2×4:3×12
→1:4:18
Difference in share = 14/23 × 11500 = 7000
 
Question 5
Mahi entered into a partnership 7 months ago. The ratio of profit claimed by Mahi and Piyush is 8:11. Piyush had started his business 9 months ago with Rs 1210. What is the amount contributed by Mahi a
Option 1: Rs. 1311 
Option 2: Rs. 1113 
Option 3: Rs. 1111 
Option 4: Rs. 1131
 
Answer: 
4: Rs. 1131
 
Explanation:
Profit ∝ time × investment 8/11 = (7 × A)/(9 × 1210) 7A=8×9×110
A = 7920/7 = 1131.4 ≈ Rs. 1131
 
Question 6
Divide Rs. 1800 among A, B and C, so that Rs.20 more than 2/5 of A’s share, Rs 10 more
than 2/7 of B’s share and Rs 5 more than 9/17 of C’s share are all equal. Then what is A’s share in the amount?
 
Option 1: Rs 590
Option 2: Rs 550 
Option 3: Rs 600 
Option 4: Rs 505
 
Answer:
2: Rs 550
 
Explanation:


Question 7
A & B are two partners that start a business by investing a capital Rs.25,000 and Rs.35000 and decide to share their profit according to their capital. But C joins the business on a condition that they will distribute the profit equally (1:1:1) and for that C gives 2,20,000 to A & B. Find in which ratio A & B will distribute that amount?
 
Option1: 1:3
Option 2: 3:1
Option3: 2:3 
Option4: 3:2
 
Answer: 
1: 1:3
Explanation:
Ratio of shares of A and B = 25000:35000 = 5:7
The ratio of profits between A and B = 5:7
Total profit = 5x+7x = 12x
Now, C joins them and the profit will be distributed equally in the ratio of 1:1:1 => Each will now get the profit of 4x.
Profit ratio will be same as the amount they invested
In 4x profit of c , A will give its x profit and B will give its 3x profit to C so that each will get equal profit of 4x.
so, clearly, as A and B have given their profit to C in 1:3 so the amount given by C will also be distributed between A and B in same ratio that is 1:3
 
 
Question 8
Yogesh started a business investing Rs. 45000. Aer 3 months, Pranab joined him with a capital of Rs. 60000. Aer another 6 months, Atul joined them with a capital of Rs. 90000. At the end of the year, they made a profit of Rs. 20000. What would be Atul’s share in it?
 
Option 1: 4000
Option 2: 6000 
Option 3: 8000 
Option 4: 5000
 
Answer: 
1: 4000
 
Explanation:
You have to take care of the months of investment, rest all will be simple. Yogesh : Pranab : Atul = 45000 ×12 : 60000 ×9 : 90000 × 3 = 2:2:1
Atul's share = Rs. 20000 × (1/5) = Rs. 4000
 
Question 9
Priya invests a part of 10000 at 6% and the remainder at 7%, the 6% investment yields annually Rs. 99.50 more than the 7% investment. The amount invested at 7% is?
Option 1: 3550
Option 2: 3650
Option 3: 3750 
Option 4: 3850
Answer: 
4: 3850
 
Explanation:

6%ofx-7%of(10000–x)=99.5 13x–700=99.5
13x% = 799.5
X% = 61.5
x=6150
(10000 – 6150) = 3850
 
Question 10
If an amount of Rs. 100000 and 150000 invested by two person A and B respectively. If the earned profit of Rs. 24000 than what should be the share of A and B?
Option 1: Rs 8600, Rs 12400 
Option 2: Rs 9600, Rs 14400
Option 3: Rs 10600, Rs 15400
Option 4: Rs 11600, Rs 16400
Answer:
2: Rs 9600, Rs 14400
Answer - B
 
Explanation
Ratio of investment of A and B = 100000 : 150000 = 2:3 Share of A = (24000*2/5 ) = Rs. 9600
Share of B = ( 24000*3/5 ) = Rs. 14400
 
Question 11
If an amount of Rs. 20000 and Rs. 25000 invested by two partners in a business. But B le the business hand C joined the business with the capital of Rs. 15000 aer the period of 4 year. An amount of Rs. 46000 earned as profit by the firm then what should be the share in profit of C?
Option 1: Rs. 12000
Option 2: Rs. 15000
Option 3: Rs. 9000
Option 4: Rs. 18000
Answer 
1: Rs. 12000
 
Explanation: Answer - A
Explanation
A: B: C = (2000*12): (25000*12): (15000*8)= 12:5:6 Share of C = (46000* 6/23) = Rs. 12000
 
 
Question 12
Partners of a firms are A, B and C. Conditions of investments are: twice the A investment is equal to thrice the capital of B and the capital of B is four times in the comparison of C capital. What should be the share in profit of B if profit earned by Rs. 297000?
Option 1: Rs 108000
Option 2: Rs 118000
Option 3: Rs 128000
Option 4: Rs 138000
Answer:
1: Rs 108000
 
Explanation:
Answer - A
Explanation Of capital C be Rs.x.then Capital of B=4xRs. 2( A's capital) = 3(B's capital) = Rs. (3*4x) = Rs. 12x ∴ A's capital = Rs. 6x
⇒ A's capital + B's capital + C's capital = 11x = 297000 ⇒x=27000
∴ B's share: 4x = Rs 108000
 
Question 13
With aRs. 21000 started business by A. aer some time , B joined the business by investing amount of Rs. 36000. If the profit of the firm is divided equally between them then find out how many months aer B join the business?
Option 1:
Option 2: 5
Option 3: 3
Option 4: 4

Answer:
 2: 5

Explanation
We assume that the period of x month B joined the business. Capital of A = (21000*12)= Rs. 252000
Capital of B = {36000* (12-x) }= Rs. (432000-36000x) 252000= 432000- 36000x ⇒ 36000x= 180000 ⇒ x= 5 Hence, B joined aer 5 months.
 
Question 14
If Rs. 1460 rent for a shadow hired by three people which are A,B and C. A puts in 10 cows for 20 days, B 30 cows for 8 days and C 16 cows for 9 days. How much rent is paid by each partner?
Option 1: 300, 400, 500
Option 2: 200, 300, 380 
Option 3: 500, 600, 360
Option 4: 100,200, 300

Answer:
3: 500, 600, 360
 
Explanation
A, B and C paid rent in the ratio = (10*20): (30*8): (16*9) = 25:30:18 Rent paid by A = Rs.( 1460* 25/73) = Rs. 500
Rent paid by B = Rs. (1460*30/730= Rs. 600 Rent paid By C = Rs. (1460* 18/73) = Rs. 360
 
Question 15
A, B and C are engaged in a business venture. A invest Rs. 8450 for 6 months, B invest Rs. 10920 for 5 months and C Rs. 13000 for 3 months. A is the working member for which he receives 5% of the profit. The total profit earned is Rs. 10360. Find the share of B in the profit.
Option 1: Rs. 3274
Option 2: Rs. 3247 
Option 3: Rs. 3742
Option 4: Rs. 3724

Answer: 
4: Rs. 3724
 
Explanation:


Question 16
Lalit started a business with a capital of Rs 36000 and admitted Pankaj and Ajay aer 6 months and 8 months respectively.At the end of the year, the profit was divided in the ratio 12 : 9 : 8. Find the difference between the capital invested by Ajay and Pankaj.

Option 1: Rs 16000 
Option 2: Rs 18000
Option 3: Rs 24000 
Option 4: Rs 20000

Answer:
2: Rs 18000

Explanation

 
Question 17
The investment made by x and y are in the ratio 3:2. If 5% of the total profit is donated and x gets Rs 8550 as his share of profit then what is the amount of total profit:

Option 1: Rs 15000 
Option 2: Rs 18000 
Option 3: Rs 12000
Option 4: Rs 24000
 
Answer:
1: Rs 15000
 
Explanation:
Let total profit = 100 Profit to be divided = 95

 
 
57 units → Rs 8550 1→ Rs150
100 → Rs 15000
 
Question 18
Shashank and Himani entered into a partnership by investing Rs. 5000 and x respectively. Aer 6 months, Shashank withdrew 60% of his initial investment while another 2 months, Himani led the business. At the end of year, Himani shared Rs. 400 as profit out of total profit of Rs. 700. Then find a value of 2000 + x.
Option 1: 8100 
Option 2: 8400
Option 3: 8000
Option 4: 9000

Answer: 
4: 9000
 
Explanation: 

 
Question 19
A and B started a new venture. A invests Rs. 1,20,000/- and B invests for 5 more months than A. If 4% of total profit goes to labours as remuneration. At the end of the year, A get 48% of total profit. Find the investment amount of B (in Rs.)
Option 1: Rs 70000
Option 2: Rs 77000 
Option 3: Rs 63000
Option 4: Rs 84000
 
Answer : 
1 Rs 70000

 Explanation:
B invest for 12 months
A invest for (12 – 5) months
A get 48% profit
B get (100%- 48% -4%) = 48%
So,
Profit of A= Profit of B CapitalofA×TimeofA=CapitalofB×TimeofB 120000×7=B×12
B = 70000 Rs.
 
Question 20
A, B and C start a business. A invests 25% of the capital for one-fourth of the time, B invests 20% of the capital for one-half of the time and the remaining capital was invested by C for the whole time. Out of the total profit of Rs. 102,600 a year, what is the difference between the share of the profit of A and B?

Option 1: Rs. 5400
Option 2: Rs. 4800 
Option 3: Rs. 6000
Option 4: Rs. 3600

Answer:
1:
Rs. 5400

Explanation:

 

 

 

 

 

 
 
 
 
 
 

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