Joint Venture Profit Share Calculation
The problem involves calculating the share of profit for one partner in a three-way joint venture based on a given profit-sharing ratio.
Understanding the Profit Ratio
The partners agree to share profits in the ratio 3:2:2. This means for every 7 parts of profit (3 + 2 + 2), the first partner gets 3 parts, the second partner gets 2 parts, and the third partner gets 2 parts.
Calculating the Second Partner's Share
The total profit earned by the venture is Rs. 1,40,000.
- The total number of parts in the profit-sharing ratio is \(3 + 2 + 2 = 7\).
- The second partner (who contributes time and strategy) is entitled to 2 parts out of these 7 parts.
- To find the second partner's profit, we calculate their proportional share of the total profit.
The calculation is as follows:
Share of Second Partner = (Second Partner's Ratio Part / Total Ratio Parts) * Total Profit
Share = \( \frac{2}{7} \times 1,40,000 \)
Share = \( 2 \times \frac{1,40,000}{7} \)
Share = \( 2 \times 20,000 \)
Share = Rs. 40,000
Therefore, the strategizing (second) partner should receive Rs. 40,000.
Similar Questions
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Important Questions from Partnership
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A, B and C invested their capitals in the ratio 2 ∶ 3 ∶ 5. The ratio of months for which they invested is 4 ∶ 2 ∶ 3, respectively. If the difference between the profit shares of A and B is Rs. 1,86,000, then C's share of profit (in Rs.) is:
A started a business with a capital of Rs. 54,000 and admitted B and C after 4 months and 6 months, respectively. At the end of the year, the profit was divided among the three in the ratio 1 ∶ 4 ∶ 5. What is the sum (in Rs.) of the capitals invested by B and C?
A, B and C started a business in partnership. Initially, A invested Rs. 29,000, while B and C invested Rs. 25,000 each. After 4 months, A withdrew Rs. 3,000. After 2 more months, C invested Rs. 12,000 more. Find the share of C( in Rs.) in the profit of Rs. 33,200 at the end of the year.
A, B and C invest in a business in the ratio 4 ∶ 5 ∶ 7. C is a sleeping partner, so his share of profits will be half of what it would have been if he were a working partner. If they make Rs 36,000 profit of which 25% is reinvested in the business, how much does B get (in Rs)?
