When two or more persons they put their money in order to carry their business that deal is known as partnership.
According to the deal, the amount of the profit is divided according to the product of the ratio of their money and duration of investment respectively.
TYPES OF PARTNERSHIP:
There are two types of partnership. Such as:
In case of simple partnership the duration of investment is constant. So the amounts of profit is divided according to the ratio among their capital respectively.
If the ratio of their amount is a: b: c, then the profit will be divided in the ratio a: b: c respectively
In case of compound partnership the duration of investment is not constant. So the amounts of profit is divided according to the product ratio among their capital and duration of investment respectively.
If the ratio of their amount is a: b: c, and duration of investment is x: y: z, then the profit will be divided in the ratio ax: by: cz respectively
TYPES OF PARTNER:
There are two types of partners in partnership business. Such as :
(i) Working partner.
The partner who works for the business is known as working partner.
(ii) Sleeping partner.
The partner who does not works for the business but puts his money, is known as working partner.
Below are Questions to solve
Three partners A, B and C invests Rs16000, Rs18000 and Rs23000 respectively in a business. How should they divide a profit of Rs19380?
A, B and C enter in to partnership. A advances Rs12000 for 4 months, B Rs14000 for 8 months, and C Rs10000 for 10 months. They gain Rs5850 altogether. Find the share of each.
A starts a business with Rs20000. B joins him after 3 months with Rs40000. C puts a sum of Rs10000 in the business for 2 months only. At the end of the year the business gave a profit of Rs5000. How should the profit be divided among them?
A and B entered in to a partnership investing Rs16000 and Rs12000 respectively. After 3 months, A withdrew Rs5000 while B invested Rs5000 more. After 3 months more C joins the business with a capital of Rs21000. The share of B exceeds that of C, out of a total profit of Rs26400 after one year, by:
Manoj got Rs6000 as his share out of the total profit of Rs9000 which he and Ramesh earned at the end of one year. If Manoj investedRs20000 for 6 months, where as Ramesh invested his amount for the whole year, the amount invested by Ramesh was:
A and B enter in to a partnership with their capitals in the ratio 7: 9. At the end of 8 months, A withdraws his capital. If they receive the profits in the ratio 8:9, find how long B’s capital was used?
A, B and C invested capitals in the ratio 2:3:5; the timing of their investments being in the ratio 4:5:6. In what ratio would their profit be distributed?
A, B and C are partners. A receives 2/5 of profit and B and C share the remaining profit equally. A’s income is increased by Rs220 when the profit rises from 8% to 10%. Find the capitals invested by A, B and C.
Two partners invest Rs125, 000 and Rs85, 000 respectively in a business and agree that 60% of the profit should be divided equally between them and the remaining profit is to be treated as interest on capital. If one partner gets Rs300 more than the other, find the total profit made in the business.