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Discussion :: Partnership

  1. X and Y enter into a partnership for a year. X invests Rs. 6000, and Y invests Rs. 8000. After 4 months, they admit Z, who invests Rs. 9000. If Y withdraws his contribution after 6 months, how would they share a profit of Rs 1000 at the end of the year?

  2. A.
    350, 300, 350
    B.
    375, 250, 375
    C.
    400, 300, 300
    D.
    100, 600,300

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    Answer : Option B

    Explanation :

    X's capital be C1 = 6000
    Y's capital be C2 = 8000
    Z's capital be C3 = 9000
    X's time be T1 = 12 months
    Y's time be T2 = 6 months
    Z's time be T3 = 8 months
    Profit = 1000

    The profit will be divided in the ratio:-

    (C1 * T1): (C2 * T2): (C3 * T3)
    (6000*12): (8000*6): (9000*8)
    i.e., 72000: 48000: 72000
    Or, 72:48:72
    Divide the whole equation by 24.
    The ratio will be 3: 2: 3
    Sum of the ratios will be 3+2+3= 8

    Apply formula:

    X's share = (X's ratio/ sum of all three ratios)* total profit
    Hence, X's share is (3/8) * 10000 = 375
    X's and Z's share are equal in ratio, so Z's share =375
    Y's share = 1000 - (A + B)'s share
    = 1000 - 750 = 250


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