Tuesday, 21 February 2017

Quantitative Aptitude Formulas - ( PARTNERSHIP )

PARTNERSHIP -

I. Partnership : When two or more than two persons run a business jointly, they are called partners and

the deal is known as partnership.

II. Ratio of Division of Gains :

(i) When investments of all the partners are for the same time, the gain or loss is distributed among the

partners in the ratio of their investments.

Suppose A and B invest Rs. x and Rs. y respectively for a year in a business, then at the end of the year :

(A’s share of profit) : (B’s share of profit) = x : y.

(ii) When investments are for different time periods, then equivalent capitals are calculated for a unit of

time by taking (capital * number of units of time). Now, gain or loss is divided in the ratio of these

capitals.

Suppose A invests Rs. x for p months and B invests Rs. y for q months, then (A’s share of profit) : (B’s

share of profit) = xp : yq.

III. Working and Sleeping Partners : A partner who manages the business is known as working partner

and the one who simply invests the money is a sleeping partner.

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