Formula Sheets for General Aptitude (Part A): Partnership !

By Renuka Miglani|Updated : February 25th, 2022

General Aptitude Formula Sheets: During the preparation, the candidates study different formulas to solve problems, but at the last moment, these formulas might not be remembered by the candidates due to exam fear or pressure. We at BYJU'S Exam Prep do not want our students to lag anywhere during the preparation, so we have come up with a concept of a Formula Sheet that will help them revise the important formulas at the last moment. This formula sheet will be a short revision tool and contain only important formulas that need to be studied at the last minute to boost the score. Our experienced subject-matter experts have meticulously designed this CSIR NET General Aptitude Formula Sheet to provide you with the best authentic material. 

In this article, we will cover the CSIR NET General Aptitude Most Important Formulas of Partnership. Aspiring candidates can check all the most important formulas of Partnership for the last-minute revision. Scroll down the full article to find out!

Formula Sheet On Partnership

Definition: When two or more two persons/partners invest in a business for a certain time, to get some profit, that’s called partnership. Or When two or more people invest money in a business, persons are called Partners, their relationship is called Partnership and money/amount invested is called Capital.

Types of Partnership:

  1. If they invest money for the same time, it is called a simple partnership.
  2. If they invest money for a different time, it is called compound partnership. Types of partners:
  3. Active partner
  4. Sleeping partner

Active partner: The person, who invests his money as well as his time in the business is called an active partner.

Sleeping partner: The person, who invests only his money, not the time is called a sleeping, partner.

Note: Active partners always get a salary for managing the business, and that salary is given from the profit earned.

Important concepts:

  1. Profit is directly proportional to Time and Investments.

Profit µ Time µ Investments Profit µ (Time x Investments)

  1. If two partners A and B invest capitals CA and CB and invest their money for TA and TB time periods respectively. Then the Ratio of their respective shares in Profit:

PA : PB = (CA x TA) : (CB x TB)

  1. If two partners A, B, and C invest capitals CA, CB, and CC and invest their money for TA, TB, and TC time periods respectively. Then the Ratio of their respective shares in Profit: PA : PB : PC = (CA x TA) : (CB x TB) : (Cc x Tc)

 

Example 1: Three partners A, B and C invest Rs. 3000, Rs. 2400, and Rs. 3600 respectively in a company. How should they divide a profit of Rs.1800?

Solution:

Since there is no time period given, we can say that profit is proportional to the investments made by A, B, and C respectively.

Ratio of Profit Distribution = Ratio of Investments

= A : B : C = 3000 : 2400 : 3600

= A : B : C = 5 : 4 : 6

So, the total profit is 5 + 4 + 6 = 15 i.e. equal to Rs. 1800. Share of A = (5/15) x 1800 = Rs. 600

Share of B = (4/15) x 1800 = Rs. 480 Share of C = (6/15) x 1800 = Rs. 720

 

Example 2: In a company, A invested Rs. 3000 for 4 months and B invested Rs. 2400 for 6 months and C invested Rs. 7200 for 2 months. If company has a profit of Rs. 1360. What will be the share of A, B, and C?

Solution:

Here, profit is proportional to the time period and the investments made by A, B, and C respectively.

Ratio of Profit = A : B : C = (3000 x 4) : (2400 x 6) : (7200 x 2)

= A : B : C = 60 : 72 : 72

= A : B : C = 5 : 6 : 6

Total profit = 5 + 6 + 6 = 17 i.e. equal to Rs. 1360

We can say, 17 = 1360

And 1 = 80

So, Share of A = 5 which means 5 x 80 = Rs. 400 Share of B = 6 which means 6 x 80 = Rs. 480 Share of C = 6 which means 6 x 80 = Rs. 480.

Example 3: P is an active partner in a partnership. P invests Rs. 2500 and Q invests Rs. 3000. P received 15% of the profit for managing the business and the rest is divided in proportion to their capitals. The amount received by P out of the profit of Rs. 1760 is: Solution:

Total profit = Rs. 1760

P receives 15% of total profit for being an active partner. Thus, Remaining profit = 1760 x (85/100) = Rs.1496

P Q

Capital Rs. 2500 Rs. 3000

Ratio of Capital 5 : 6

The remaining profit will be divided in the ratio of capital invested. Share of P in Profit = (1496/(5+6)) x 5 = Rs. 680

Thus, Total profit of P in business = 680 + 264 = Rs. 944

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