PARTNERSHIP By Harpreet Kaur
About Me HarpreetKaur M.TechinWireless Communication (Thapar University) cleared Exams so far: IBPS PO Pre(2017), SSC-CGL Tier-1 (2017) Follow meon Unacademy Ifyou like my course Pleaserate,review andshare Anysuggestions and doubts are always welcome
Introduction 1. Investment rule: In case of simple partnership or equal time partnership, profit is divided t ratio. Investment Ratio (IA 1B IC) Profit Ratio (PA PB PC) IA IB PA PB IA is investment of A and PA is profit of A IB is investment of B and PB is profit of B IC is investment of C and PC is profit of C
Example: Q: A B and C started a business by investing Rs 120,000, Rs 1 35,000 and Rs1 50,000 respectively.Calculate theshare of B outof totalannual profit ofRs 56,700. Sol: Profit Ratio Investment Ratio (IA 1B IC) = (PA : PB : PC) (1,20,000 : 1,35,000 : 1,50,000) - (PA : PB : PC) - (PA PB PC) (8 9 10) PB Profit share of B = x Total Profit Total Investment 9 27 18,900 =-x 56700 = Rs 18,900 3
2. Equilent Capital Rule: Profit is divided among the partners, according to their investment time roduct ratio under three conditions. a) If the investments of the partners are for different time interval b) If any of the partner joins or leaves business later on after the start. c) If any of the partner changes his investment later on after the start of the business. Investment Capital Profit Ratio - (PA PB PC) PA PB IA TA IA, IB and IC are investments of A, B, C res ectively and TA, TB and TC are time periods of A, B, C for which they invested their money in business and PA, PB and PC are profits of A, B and C respectively.
Example: Q: A and Bstarted a business by investing Rs 5,000 and Rs 4,500. After 4months C joined them withan equalinvestmentof B. Calculate theshare of B, if thetotalannual profit is Rs 1500. Sol: Investment Capital Profit Ratio (5000 x12 : 4500 x12 : 4500x8) (50x3 : 45x3 : 45x2) (PA : PB : PC) (PA : PB :PC) (PA PB PC) (PA PB PC) = - (50: 45 15 x2) (10: 9: 6) PB Profit share of B = stment Capital * Total Profit 9 60 25 -- x1500 = Rs 540
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