Partnership-Formula

Basic Formulas of Partnership

If two partners A and B are investing their money to run a business then
(Simple Partnership)

Partnership Shortcut Methods

Capital of A : Capital of B = Profit of A : Profit of B

 

If two partners A and B are investing their money for different period of time to run a business then
(Compound Partnership)

Partnership Shortcuts

Capital of A × Time period of A : Capital of B × Time period of B = Profit of A : Profit of B

 

If n partners are investing for different period of time then

C1T1 : C2T2 : C3T3 : … : CnTn = P1 : P2 : P3 : … : Pn

Where C is the capital invested, T is time period of capital invested and P is profit earned.

 

Shortcut Methods for Partnership

Rule 1:

If two partners are investing their money C1 and C2 for equal period of time and their total profit is P then their shares of profit are

Partnership Shortcut Methods

If these partners are investing their money for different period of time which is T1 and T2, then their profits are

Partnership shortcut Formulas

 

Rule 2:

If n partners are investing their money C1, C2, …, Cn for equal period of time and their total profit is P then their shares of profit are

Partnership Shortcut Formulas

If these partners are investing their money for different period of time which is T1, T2,… , Tn then their profits are

Partnership Shortcut Methods