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:

- If they invest money for the
**same time**, it is called a**simple partnership**. - If they invest money for a
**different time**, it is called**compound partnership**.**Types of partners:** - Active partner
- 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:**

- Profit is directly proportional to Time and Investments.

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

- 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:

**P****A : PB = (CA x TA) : (CB x TB)**

- 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:
**P****A : 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

**Download PDF for Formula Sheets: Partnership**

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