Some formulas of partnership
1. Partnership : When two or more than two persons run a business jointly, they are called partners and the deal is known as partnership
2. Ratio of Division of Gains:
(i)When investments of all the partners are for the same time, the gain or loss is distributed among the partners in the ratio of their investments.
Suppose A and B invest Rs. x and Rs. y respectively for a year in a business, then at end of the year
(A’s share of profit) : (B’s share of profit) = x:y
(ii) When investments are for different time periods, then equivalent
capitals are calculated for a unit of time by taking (capital x number of units of time).Now, gain or loss is divided in the ratio of these capitals.
Suppose A invests Rs. x for p months and B invests Rs. y for q months, then
(A’s share of profit) : (B’s share of profit) = px : qy
3. Working and Sleeping Partners:
A partner who manages the business is known as a working partner and the one who simply invests the money is a sleeping partner
I hope these concepts will be helpful for you to solve some of your math problems.
| Title | Some formulas |
|---|---|
| Canonical name | SomeFormulasOfPartnership |
| Date of creation | 2014-08-26 11:08:16 |
| Last modified on | 2014-08-26 11:08:16 |
| Owner | burgess (1001318) |
| Last modified by | burgess (1001318) |
| Numerical id | 1 |
| Author | burgess (1001318) |
| Entry type | Definition |