Tips on Problems based on Partnership

PARTNERSHIP

1. Capital = money put in the beginning =investment * months

2. Net Capital or net investment =capital* time

3. Time should always be calculated in months or days.

4. Profits are distributed in the ratio of net capital.

5. If capitals are given in the form of fraction like A=1/3, B = 3/5, C=4/7
Then capitals are in the ratio of 35:63:60 ( using LCM method)

6. Sleeping Partner- who gets share of profit only, after everything is subtracted from the profit.

7. Working partner- he gets some money for working. This money is to be subtracted from the total profit and then he gets his due share from the new profit.

8. If a partner takes loan at a certain interest then interest is added to the profit, but in the end he also gets back his share of interest in share of profit.

9. Taxes are reduced from the original profit before hand. But individual income tax is given after distribution of profits.

Sample Question. 5 kg of rice and 2 kg of tea cost Rs/- 35, prices of rice grew by 10% and tea by 35% and together I could purchase it for Rs.420. What is the price of tea.

(in these type of questions, whatever is asked take reverse of that, here tea is asked so work on rice.)

Method
350+10% of 350=385
420-385=35
There is a difference of 25%(35%-10%)
This is Rs. 35
25% corresponds to Rs. 35
therefore 100%=140
2 Kg=Rs 140. so 1kg =70

Example.- I hired a servant for Rs. 300 per month and a cycle if he works for a year. After 8 months I threw him out and paid him Rs. 50 for that month and the cycle. How much does the cycle cost?

Example- A horse and a carriage were bought for Rs. 12000. the carriage was sold at a loss of 10% , horse was sold at a profit of 20%. Together I received Rs.13500. what is the C.P. and S.P. of each.

Method-Assume everything to be a horse, so I shud have sold everything at 20% profit.20% of 12000+12000= 14400.But I received Rs. 13500 only that makes a difference of 900 or Rs. 900 are less. This also makes a difference of 30% coz we calculated 40% profit (20+20%), but we had [+20%+(-10%)]=10%
I calculated 30% more on carriage.
30% or carriage=900
therefore 100%=3000

so now we have the individual cost of the horse, the carriage is for 9000/-and the S.P. can b calculated now.

Example.- I hired a servant for Rs. 300 per month and a cycle if he works for a year. After 8 months I threw him out and paid him Rs. 50 for that month and the cycle. How much does the cycle cost?

Method- In 8 months the servant has earned 2/3rd (8/12) of the cycle. So he is left with just 1/3rd of the cycle, which we will cut in place of 300 we gave him only 50.
1/3 corresponds to (300-50)=250
therefore 1=750. so the cost of the cycle is Rs. 750.