What is Partnership and Why it so important in exams:
A partner who manages the business is known as working partners and the one who simply invests the money is a sleeping partner is called as Partnership.
Partnership, the concept is important to understand the concept of business model, where it useful in job location also important to understanding the complete business model concept.
Ratio of Division of Gains
- The amount 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 investments 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.
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
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.
Answer is Rs.2k