Partnership is a business in which two or more persons come together with a motive to divide the profits. For this purpose we classify it into two types.

Simple Partnership
If the time period of investment of all the partners is same. Even if the investment are different, then that partnership is a simple partnership. The profit in this case is divided in the ratio of the investments

Compound Partnership
If the time period of investment of any one or more partners is different even if the investment are same then that partnership is compound partnership. In this case the profit is divided in the ratio of the products of the investments and respective time period.
  • Partners who share the investment also share the profits or loss if any.
  • Usually all the partners take active part in running the business. Sometimes one partner may invest his money but not take an active part in running the business. Such a partner is called sleeping partner. He leaves the task of running the business to the other partner. The partner who runs the business is called the working partner.
Simple Partnership
Compound Partnership
The profit or loss is divided in the ratio of their investments.
The Profit or loss is divided in the ratio of their monthly equivalent investments.
If two partners A and B have entered a simple partnership then:
Investment of A : Investment of B =
Profit of A : Profit of B
If two partners A and B have entered a compound partnership then :
Monthly equivalent of A : Monthly equivalent of B = Profit of A : Profit of B
Monthly equivalent of A : Monthly equivalent of B = Loss of A : Loss of B
Investment of A : Investment of B = Loss of A : Loss of B
Monthly equivalent investment is the product of capital and the number of months for which it is invested.

Example 1.A with Rs. 4000, B with Rs. 7000 and C with Rs. 12000 started a business. After a year if the combined profit of B and C is Rs. 3000 more than that of A. Find the total profit.
Solution: Ratio of investments of A : B : C = 4 : 7 : 12
Hence, (B + C) - A = (12 + 7 - 4) = 15
If (B + C) = A is Rs. 3000 then, Total profit = x 3000 = Rs 4600
Example 2.A with Rs. 8000 and B with Rs. 11000 started a business. A gets 25% of the profit as salary being a working partner. Remaining is divided in the ratio of investments. If A gets Rs. 4300, find the Total Profit.
Solution: Let the total profit be x
Profit of A is = 4300 = 4300 Therefore, x = Rs. 7600

Example 3. A with Rs. 4000 and B with Rs. 11000 started a business. 3 months later C joined with Rs. 7000, 2 months later A leaves. After 12 months if B gets Rs. 1320 as profit. Find the total profit of A & C
Solution: Ratio of Investment of A : B : C = 4 : 11 : 7
Ratio of time periods = 5 : 12 : 9
Ratio of Profits = 20 : 132 : 63
If B gets Rs. 132 then total profit of A & C = Rs. 83
If B gets Rs. 1320 then (A + C)’s profit = Rs. 830

Example 4. A with Rs. 8000 started a business. B joined later with Rs. 12000. After 18 months they divided the profit in ratio 2 : 1, when did B join?
Solution: Ratio of profits 2 : 1
Ratio of investment 2 : 3
Ratio of time periods =
= 1 : = 3 : 1
B’s investment is for x 18 months = 6 months
B joined after 1 year.

Example 5.A invests Rs. 5000 and B invests Rs. 6000. A is a working partner. A receives 1/8 of the profit as salary and rest is divided in proportion of their capitals. If A gets Rs. 460 then find the total profit.
Solution: Ratio of investment is 5 : 6
Let the total profit be x
Share of A = = Rs. 460
= = 460 Therefore, x = Rs. 880

Example 6.A, B, C enter into a partnership. A advances Rs. 600 for 8 months, B advances Rs. 2800 for 4 months, C advances Rs 2000 for 5 months. They earn a profit of Rs. 585 together. Share of C is
Solution: Ratio of investment (A : B : C) (600 : 2800 : 2000)
Ratio of time periods 8 : 4 : 5
Ratio of profits = 4800 : 11200 : 10000
= 12 : 28 : 25
Share of C = x Rs. 585 = Rs. 225

Example 7.A invested Rs. 24000 for 8 months and investment of B is for 4 months. Annual ratio of profits is 3 : 4. Find the investment of B
Solution: Ratio of profit is 3 : 4
Ratio of time period is 2 : 1
Ratio of investment is : = 3 : 8
If investment of A = Rs. 24000
Therefore investment of B = Rs. 64000

Example 8. A and B rent a pasture for 20 months. A puts in 160 oxen for 14 months. How many can B put in for the remaining 6 months, if he pays half as much as again.
Solution: Rent ratio of A & B = 2 : 3 (half as much again means half more)
Time ratio = 14 : 6
Oxen ratio = = 2 : 7 160 : 560
Example 9. Investment ratio of A, B, C is for the same time period. If A gets Rs.560 as profit then how much does B get more than C.
Solution: Investment ratio is = 28 : 21 : 12
If A gets Rs. 28 then (B - C) = Rs.9
If A gets Rs: 560 then (B - C) is 560 x = Rs. 180

Example 10.A, B & C enter into a partnership for 1 year A invests his money at the start. B invests twice the amount of A but after 6 months, C invests 3/2 times that of B after 8 months. If total profit = Rs. 12000. What is the Share of B ?
Solution: Investment ratio A : B : C = 1 : 2 : 3
Time period of investment = 12 : 6 : 4
Profit ratio is 1 : 1 : 1
Share of B = = Rs. 4000
Want to Know More
Please fill in the details below:


Recent Law Posts$type=three$c=3$author=hide$comment=hide$rm=hide$date=hide$snippet=hide

Recent Management Posts$type=three$c=3$author=hide$comment=hide$date=hide$rm=hide$snippet=hide

Recent HM Posts$type=three$c=3$author=hide$comment=hide$date=hide$rm=hide$snippet=hide


Abetment,1,Absolute Liability,1,Admit Card,12,admit-card,1,Agency,1,AIBE,2,AILET,4,AILET 2020 Admission,1,AILET Exam,2,AILET Mock Test,1,Alphabetical Series,3,AMU Application Forms 2022,1,Anagrams,1,Analogies,3,Answer Key,2,answer-key,6,aptitude test preparation for BBA.,1,Attempt,1,Average,1,BA entrance exam 2019. BBA coaching classes in Delhi,1,BA-LLB,2,Bailment,1,BBA,1,BBA Aptitude Test,1,BBA Coaching Ghaziabad,1,BBA entrance exam,2,BBA entrance exam preparation,1,BBA entrance exams,1,BBA entrance in Delhi,1,BBA exam,4,BBA exam crash course,1,BBA merit list 2019,1,BBA Mock Test,1,BBA Study Books,1,BBA Study Material,1,BHU LLB 2019,1,BHU LLB 2020 Application Form,1,BHU-LLB,3,Blood Relation,2,Breach of Contract,1,Capacity of Parties,1,Cheating,1,Clat,8,CLAT 2019 Analysis,1,Clat admission,1,CLAT Coaching,2,CLAT Coaching Delhi,1,CLAT coaching in Noida,1,CLAT Entrance Exam,2,CLAT Entrance Test,1,CLAT Exam,3,CLAT Exam Pattern,2,CLAT Mock Test,1,CLAT Preparation,1,CLAT previous year question paper,1,CLAT Study Material,1,CLAT-GK,1,Clock Calendar,4,Cloze Test,7,Coding Decoding,3,Compound Interest,1,Consideration,1,Contract,12,Contract-LA,8,Criminal Breach of Trust,1,Criminal Conspiracy,1,cut off,5,cut-off,3,Dacoity,1,Dangerous Premises,1,Data Interpretation,1,Defamation,1,Dice Test,1,Direction Sense Test,2,DU LLB 2017,1,DU LLB Brochure,1,DU LLB Coaching,1,DU LLB Entrence,2,DU LLB Exam,6,DU LLB exam Coaching,1,DU-LLB,3,English,25,Exam,3,Exam Pattern,5,Extortion,1,featured-articles,1,Free Consent,1,General Defenses,1,General Exceptions,1,Geometry,1,Grammar,2,Height Distance,1,Hotel Management,148,Hotel Management Coaching in Delhi,1,Hotel Management Coaching,1,Hotel Management Colleges,1,Hotel Management Entrance Exam,3,How to Become a Chef,1,how to crack CLAT,1,how to crack CLAT with coaching.,1,how to prepare for BBA 2019?,1,Idioms,3,IHM,23,IHM Exam 2018,1,IHM BOOK,1,IHM Exam Syllabus,1,IHM in Ahmedabad,1,IHM in Bangalore,1,IHM in Bhopal,1,IHM in Bhubaneswar,1,IHM in Chandigarh,1,IHM in Chennai,1,IHM in Goa,1,IHM in Gurdaspur,1,IHM in Guwahati,1,IHM in Gwalior,1,IHM in Hajipur,1,IHM in Hyderabad,1,IHM in Jaipur,1,IHM in Kolkata,1,IHM in Lucknow,1,IHM in Shimla,1,IHM in Srinagar,1,IHM in Trivandrum,1,Indian Partnership Act 1932,1,IPC,11,IPC-LA,7,IPMAT 2020,2,IPU CET,1,IPU CET application forms,1,IPU CET Exam,2,IPU LLB Exam,1,JMI-BA.LLB,2,Jumbled Sentences,2,Latest articles,257,Latest News,15,Law,328,Law of Torts,1,Law Study Material,1,law-B.com,1,Law-Entrances,1,Legal Aptitude,60,Liability of Owner,1,LLB-Colleges,1,LLB-LLM,1,LLB-LLM BHU,1,LSAT Exam,1,LSAT Exam Coaching,1,MAH CET 2020,1,Management,114,Mensuration,1,Mixture Allegation,1,NCHM JEE 2017,1,NCHM JEE Cutoff 2017,1,NCHMCT,6,NCHMCT application form 2020,2,NCHMCT Coaching,1,NCHMCT Courses Class 12th Students,1,NCHMCT Exam,3,NCHMCT Exam Pattern,2,NCHMCT in Mumbai,1,NCHMCT JEE,2,NCHMCT JEE coaching,1,NCHMCT JEE Entrance,1,NCHMCT Registration,1,Negligence,1,Nervous Shock,1,New CLAT Pattern,1,news,2,Notification,1,Nuisance,1,Number Puzzle,2,Number Series,3,Number System,1,Offences against Human Life,1,Offences Documents,1,Offences Marriage,1,Offer Acceptance,1,Others,39,Partnership,1,Percentage,1,Permutation Combination,1,Probability,1,Profit Loss,1,Progression,1,Quant,17,Quantitative Aptitude,17,Quasi Contracts,1,Quiz,68,QZ-1 LA,1,Ratio Proportion,1,Reasoning,28,Results,13,Robbery,1,Seating Arrangement,3,Sedition,1,SET 2020 Application Form,1,SET 2020 Application Forms,1,SET 2020 Important dates,1,SET Entrance Exam,2,Simple Interest,1,Spelling,3,Strict Liability,1,Study Notes,64,Success Stories,1,syllabus,6,Syllogism,2,Theft,1,Time Speed Distance,1,Tips & Strategy,13,Tips and Strategy,2,Tort,12,Tort-LA,11,Trespass to Goods and Conversion,1,University for Clat,1,Venn Diagram,3,Verbal Ability,24,Vicarious Liability,1,Vicarious Liability of State,1,Vocabulary,3,Void Agreements,1,Void Contract,1,Work Pipe Cistern,1,
ClearExam: Best CLAT Coaching in Delhi | Best CLAT Coaching Center | CLAT Online Coaching: quant-partnership-theory-part1
ClearExam: Best CLAT Coaching in Delhi | Best CLAT Coaching Center | CLAT Online Coaching
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy