What is Partnership and Why is it so important in exams: A partner who manages the business is known as a working partner and the one who simply invests the money is a sleeping partner is called a Partnership.
Partnership, the concept is important to understand the concept of business model, where it useful in job location also important to understand the complete business model concept.
partnership formula and tricks
Ratio of Division of Gains
- The amount of investment of all the partners are for the same time period, the gain or loss amount is distributed among the partners in the ratio of their investment amounts.
Suppose, Karthik and Rajesh invest some money Rs. K1 and K2 respectively for a year in a business, at the end of year profit will be distributed among them ( Karthik share of profit ) : ( Rajesh share of profit ) = Karthik : Rajesh.
Suppose, Rajesh invest Rs. M1 for T1 months and Harry invest Rs. M2 for T2 months, then ( Rajesh share of profit ) : ( Harry share of profit ) = Rajesh T1 : Harry T2.
partnership problems tricks
Shreya and her friend invested in the ratio 5 : 3 in a business. If 4% of the profit is given to charity and Shreya’s share is Rs.1,200 then what will be the total profit?
a)Rs.1k b)Rs.2k c)Rs.1.5k d)Rs.1.8k
Answer: b)Rs.2k
Solution:
Let the total profit be Rs.100.
4% of profit is for charity,
Shreya’s share = Rs.[(100-4) x (5/8)] = [96 x(5/8)] = Rs.60
If Shreya’s share is Rs.60 then the total profit = Rs.100.
If Shreya’s share is Rs.1,200 then total profit = Rs.[(100/60) x 1200] = Rs.2,000.
The answer is Rs.2k
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