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BACK PARTNERSHIP
Important Facts:
Partnership:When two or more than two persons run a business jointly, they are called partners and the deal is known as partnership. Ratio of Division of Gains:
1.When the investments of all the partners are do the same time, the gain or loss is distributed among the partners in the ratio of their investments. Suppose A and B invest Rs x and Rs y respectively for a year in a business, then at the end of the year: (A's share of profit):(B's share of profit)=x:y 2.When investments are for different time periods, then equivalent capitals are calculated for a unit of time by taking (capital*number of units of time). Now gain or loss is divided in the ratio of these capitals. Suppose A invests Rs x for p months and B invests Rs y for q months, then (A's share of profit):(B's share of profit)=xp:yq 3.Working and sleeping partners:A partner who manages the business is known as working partner and the one who simply invests the money is a sleeping partner. FORMULAE
1.When investments of A and B are Rs x and Rs y for a yearin a business ,then at the end of the year (A's share of profit):(B's share of profit)=x:y 2.When A invests Rs x for p months and B invests Rs y for q months,then A's share profit:B's share of profit=xp:yq BACK |