Partnership MCQ 1: ( A B and C enter into a partnership )
Partnership MCQ 1: A B and C enter into a partnership. They invest Rs. 40,000, Rs. 80,000 and Rs. 1,20,000 respectively. At the end of the first year, B withdraws Rs. 40,000, while at the end of the second year, C withdraws Rs. 80,000. In what ratio will the profit be shared at the end of 3 years?
A) 2 : 3 : 4 b) 3 : 2 : 4 c) 3: 2 : 1 d) 3: 4 : 7
Solution:
We will find their investment for their respective periods here.
Investment by A
Rs 40000 for three years i-e for 36 months
So, A’s investment =
\[ 40000\times 36= Rs1440000 \]
Investment by B;
B invested 80000 for first year i-e Rs 80000 for 12 months, so B’s investment for first year is;
\[ 80000\times 12=Rs 960000 \]
On the start of second year B withdrew Rs 40000 from partnership and thus his invest ment for next two years or 24 months is Rs 40000 – So B’s remaining investment is;
\[ 40000\times 24=Rs 960000 \]
So B’s total investment =
\[ 960000+960000=Rs1920000 \]
Investment by C;
C invested Rs 120000 for first two years or 24 months and after withdrawing Rs 80000 his investment remained as Rs 40000 for third year or 12 months.
So C’s investment is ;
\[ 120000\times 24+40000\times 12=Rs 3360000 \]
So investment ratio is ;
A : B : C |
1440000 1920000 3360000 |
Cancelling zeros,
A : B : C |
144 192 336 |
Cancelling common factors,
A : B : C |
3 : 4 : 7 |
So the option d is correct

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