Aptitude - Partnership

Partnership

When some money is invested by two or more people jointly then they are called partners and under an agreement they invested money is called partnership.

Division of Profit/Loss

When all investor invested their money for the same time then their profit or loss is divided between them in the ratio of their capital invested. For example, If A and B invested Rs. 2000 and Rs. 3000 then their ratio of their capital will be as follows:

A: B = 2000: 3000
= 2: 3 

When all investor invested their money for the different durations then calculation of capital will be as follows: (capital * number of unit time)

If A invest 2000 Rs . for 5 month and 5000 rs. for 7 month and in the opposite side B invested 3500 for 3 month and 2500 rs . for 9 months. Then the calculation of capital as follows :

A: B = (2000*5 + 5000*7) : (3500*3+ 2500*9) 
= 45000: 33000 
= 15:11 

Solved Examples