Aptitude - 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