What is Partnership?
Persons Two or more than two persons when start and run the new business jointly of their own choice , the persons start they are called Partners and the deal is done between the partners is known as Partnership.
Ratio of Division of Gains
- The amount investment of all the partners are for the same time period, the gain or loss amount is distributed among the partners in the ratio of their investments amounts.
Suppose, SONAM and SWATI invest some money Rs. R1 and R2 respectively for a year in a business, at the end of year profit will be distributed among them (SONAM share of profit): (SWATI share of profit) = SONAM: SWATI.
- When investments are for different time periods, then equivalent capital are calculated a unit of time by taking (Capital x number of unit of time).
Suppose, SONAM invest Rs. R1 for t1 months and SWATI invest Rs. R2 for t2 months, then (SONAM share of profit): (SWATI share of profit) = SONAM x T1:SWATI x T2.
Sara started a software business by investing Rs. 40,000 . After six months, Nitikajoined him with a capital of Rs. 60,000. After 3 years, theyearned a profit of Rs . 27,900 .What was Sara’s share in the profit?
Short trick- Sara : Nitika share of capital
= ( 40,000 x 36 ) : ( 60,000 x 30 ) = 1440000 : 1800000 = 4 : 5 .
Sara’s share is = Rs. 27900 x 4 / 9 = Rs. 12400.
Jasmin and Harish started a partnership business investing some amount of money in the ratio of 2 : 3 . Ronit joined them after six months with an amount equal to that of Harish. In what proportion should the profit at the end of one year be distributed among Jasmin, Harish and Ronit?
Let the initial investment money ratio of Jasmin and Harish is 2x and 3x.
So Jasmin , Harish and Ronit ratio of investment is (Jasmin : Harish : Ronit ) = (2x X 12 ) : ( 3x X 12 ) : ( 3x X 6 ) = 24 : 36 : 18 = 4 : 6 : 3 .
Jeenat started a business and she invested in 76000, After some month, Amrita came to join with her and invest 57000.The end of the year the total profit was divided among them into ratio form 2 : 1.Find after how many months Amrita join.
Step 1: we can assume that Amrita join into business after x months. So Amrita’s money was invest into (12 – x) months.
Step 2: 76000 x 12 / 57000 x (12 – x) = 2 / 1
912000 = 114000 (12 – x) => 114 (12 – x) = 912
=x = 4
hence, after 4 months Amrita join the business.
Ashish, Mukta and Ridhi started a business each investing Rs.20,000. After 4 month Ashish withdraws Rs.6000, Mukta withdraws Rs.8000, Ridhi invest Rs.6000 more at the end of the years, a total profit was Rs.65600. Find the share of each.
Ratio capital of Ashish, Mukta and Ridhi.
= ( 20,000 x 4 + 14000 x 8 ) : ( 20,000 x 4 + 12000 x 8 ) : ( 20,000 x 4 + 26000 x 8 )
= 192000 : 176000 : 288000
Ashish share = (65600 x 192 / 656 ) = 192000
Mukta share = ( 65600 x 176 / 656 ) = 176000
Ridhi share = (65600 x 288 / 656 ) = 288000