# Partnership-Formula

## Basic Formulas of Partnership

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

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)

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

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

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

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