Hello! I am Harsh Sharma B.Tech in Computer Science CAT 2016-98 percentile(OA) Aptitude Trainer/Tutor = Movies | Music | Football 2
Partnerships Introduction to the basic concepts and formulae of partnerships.
Important terms: 1) Partnership: If two or more than two persons run a business jointly, then they are called partners and the deal is known as partnership. There are two types of partnership: simple partnership and compound partnership 2) Simple partnership: a) In this type of partnership, the capitals of each of the partners are invested for same time. b) Gains or losses are divided among the partners in the ratio of their investments 3) Compound partnership: a) In this type of partnership, the periods of investments are unequal b) Equivalent capitals for a unit of time are calculated by multiplying the capital with number of units it was in business 4
Working partner Partner managing the business. He/She might or might nor invest money in the business. Along with the share of his/her profit, this kind of partner also receives an amount for managing the amount. Sleeping partner: Partner only investing money. He/She does not play any role in managing the business. This kind of a partner only receives his/her share of the profit
Ratio of division of gains: 1) Simple partnership: Partners invest for same time. Suppose P and Q invest Rs. x and Rs. y respectively for a year in a business, at the end of the year P's share of profit x Q's share of profit y x: y = P's share of profit: Q's share of profit 6
2) Compound partnership: When partners invest for different time periods, then equivalent capitals are calculated for a unit of time by taking (capital x number of units of time) Suppose P and Q invest Rs. x for a months and Rs. y for b months respectively then, P's share of profit xa Q's share of profit yb P's share Capital (amount) of P x Time period of P: Capital (amount) of Qx Time period of Q of profit: Q's share of profit When n number of partners invests for different time periods T, then A is the amount, T is the time period and P is the profit earned. 7
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B.Tech in Computer Science | CAT 2016 - 98.6 percentile (100 percentile in Quants) | Footballer