Abdhul, Vipul and Sunil enter into a partnership investing Rs 1000, Rs 3600 and Rs 5800 respectively. At the end of a certain period they earn Rs 2860 as profit. Vipul's share of profit will be ....................

Appeared in: ESIC Nursing Officer 2016 (Shift -2)

Explanation

In a partnership, profits are divided in the same ratio as the capital invested by each partner, assuming the investment duration is equal for all.
The investments are Rs 1000, Rs 3600, and Rs 5800. The ratio of these investments simplifies to 5 : 18 : 29.
The sum of the ratio parts is 5 + 18 + 29 = 52.
Vipul's share corresponds to his ratio part (18). His profit is calculated as (18/52) of the total profit.
Calculation: (18 / 52) * 2860 = 18 * 55 = Rs 990.

Option A: This is an incorrect calculation. It may result from an error in simplifying the ratio or a miscalculation during the division or multiplication step.
Option B: This is a duplicate of the first option and is also an incorrect calculation.
Option D: This amount (Rs 1000) is equal to Abdhul's initial investment, not Vipul's share of the profit. It's a distractor that confuses investment with profit.

Visual 1: Flowchart: A visual flowchart illustrating the step-by-step process: 1. List Investments -> 2. Find Ratio -> 3. Simplify Ratio -> 4. Sum Ratio Parts -> 5. Calculate Individual Share. This would clarify the calculation sequence.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Partnership and Profit Sharing as background academic context rather than a clinical decision trigger.
Understanding profit-sharing ratios is a fundamental concept in business and finance, applicable to any joint venture or partnership.
This calculation method ensures fairness by distributing earnings in direct proportion to the capital contribution of each partner, a key principle in business ethics.
What if? If the partners invested for different time periods (e.g., Abdhul for 12 months, Vipul for 6 months), the profit-sharing ratio would be calculated based on the product of investment and time (e.g., 1000×12 : 3600×6). This is known as a compound partnership.

How to Approach the Question

First, identify the individual investments made by each partner and the total profit earned.
Next, write down the investments as a ratio (e.g., Investment A : Investment B : Investment C).
Simplify this ratio to its lowest terms by dividing all parts by their greatest common divisor.
Calculate the sum of all the parts of the simplified ratio.
To find a specific partner's share, use the formula: (Partner's Ratio Part / Sum of Ratio Parts) × Total Profit.
Perform the calculation to find the final answer and match it with the given options.

Concept Tested & Keywords

QsmKVbty-F7cx4vGZACzlJ

Practise the full ESIC Nursing Officer 2016 (Shift -2)

Attempt every question from this paper in a timed mock, then review the full solution for each one.