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Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?
  • a)
    5 : 7 : 8
  • b)
    20 : 49 : 64
  • c)
    38 : 28 : 21
  • d)
    None of these
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Three partners shared the profit in a business in the ratio 5 : 7 : 8....

Calculation of Ratio of Investments:

Step 1:
Let's assume the investments of the partners are 5x, 7x, and 8x respectively.

Step 2:
The profit sharing ratio is given as 5 : 7 : 8.

Step 3:
Using the concept of profit sharing, we can calculate the total profit as follows:
Total profit = (5 * 14x) + (7 * 8x) + (8 * 7x) = 70x + 56x + 56x = 182x

Step 4:
Now, we can calculate the ratio of their investments by dividing each partner's investment by the total profit:
Investment ratio = (5x / 182x) : (7x / 182x) : (8x / 182x)
Investment ratio = 5 : 7 : 8

Therefore, the ratio of their investments is 5 : 7 : 8, which is option (b).
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A, B and C are partners sharing profits and losses in the ratio of 2 : 1 : 1 respectively.On 31st March, 2012, their balance sheet was as follows:A died on 1st April, 2012. The firm had taken a joint life policy for Rs 1,20,000, the payment for which was received by the firm. According to the partnership deed, on retirement or death of a partner, the goodwill of the firm was to be valued at 1½ times of the average profit for the last four years.The profits for the last four years were Rs 64,000, Rs 69,000, Rs 72,000 and Rs 75,000 respectively. For paying the amount due to A’s legal representative, B and C brought as much cash as would bring their capitals in profit sharing ratio and the firm would have a cash balance of Rs 3,000.Pass journal entries to record the above mentioned transactions and prepare partners’ capital accounts.?

A, B and C are partners sharing profits and losses in the ratio of 2 : 1 : 1 respectively.On 31st March, 2012, their balance sheet was as follows:A died on 1st April, 2012. The firm had taken a joint life policy for Rs 1,20,000, the payment for which was received by the firm. According to the partnership deed, on retirement or death of a partner, the goodwill of the firm was to be valued at 1½ times of the average profit for the last four years.The profits for the last four years were Rs 64,000, Rs 69,000, Rs 72,000 and Rs 75,000 respectively. For paying the amount due to A’s legal representative, B and C brought as much cash as would bring their capitals in profit sharing ratio and the firm would have a cash balance of Rs 3,000.Pass journal entries to record the above mentioned transactions and prepare partners’ capital accounts. in this question how b capital become 88750 and c capital will become 68750?

A & B are partners in the ratio of 3:2. The firm maintains fluctuating capitals account and the balance of the same as on 31.3.2020 amounted to ₹1,39,800 and 1,60,200 for A and B respectively. Their drawings during the year were ₹30,000 each. As per the deed interest on capital @ 10% p.a. on opening capital had been provided to them. Calculate opening capitals of partner given that their profits were ₹90,000. Show your working clearly.?Read more at: A & B are partners in the ratio of 3:2. The firm maintains fluctuating capitals account and the balance of the same as on 31.3.2020 amounted to ₹1,39,800 and 1,60,200 for A and B respectively. Their drawings during the year were ₹30,000 each. As per the deed interest on capital @ 10% p.a. on opening capital had been provided to them. Calculate opening capitals of partner given that their profits were ₹90,000. Show your working clearly.?

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Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?a)5 : 7 : 8b)20 : 49 : 64c)38 : 28 : 21d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?a)5 : 7 : 8b)20 : 49 : 64c)38 : 28 : 21d)None of theseCorrect answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?a)5 : 7 : 8b)20 : 49 : 64c)38 : 28 : 21d)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Three partners shared the profit in a business in the ratio 5 : 7 : 8. They had partnered for 14 months, 8 months and 7 months respectively. What was the ratio of their investments?a)5 : 7 : 8b)20 : 49 : 64c)38 : 28 : 21d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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