# Partnership Mathematics

Introduction:

Partnership: When two or more people agree to run a business that is run by everyone from all those people or by any one of them And at the end of a certain time they divide the profit or loss in a certain proportion, is called a partnership.

Partners: Individuals who agree to run a business under partnership are called as partners individually.

Capital: The money provided by the partners to run a business under partnership is called the capital of the partners.

Executive Partner: A partner who actively participates in partnership, is called an executive partner. Out of the profits received from the business, it is given a fixed amount as a remuneration which is deducted from the total profit and the net profit is divided between all the partners in their beneficiary ratio.

Partnerships can be divided into two parts –

1. Simple Partnership : All partners here invest their respective capital for the same time. Therefore, the profit or loss received from the business in such a partnership is divided among the proportion of the capital invested by the partners.

2. Compound Partnership: In this, all partners place their respective capital in the business for different times, hence the profits gained by the business in this partnership or the capital imposed by the partners. The profit or loss is divided into proportion to the product of time and investment.

Tricks with Tricky Solutions Examples

Type – 1
TRICK – If A and B have invested capital for the same time, then profit of A (PA): profit B (PB) = Capital of A (CA): Capital of B (CB)

Type – 2
TRICK – If A, B and C have invested capital for the same time, then Profit of A (PA): B’s profit (PB): profit of C (PC) = A (CA): Capital of B (CB): Capital of C (CC)

Type – 3

Type – 4
TRICK – If A, B and C have invested their separate capital for different times,Then The Profit of A (PA): B’s Profit (PB): C’s Profit (PC) = A’s time × A’s Investment (CA × TA): Time of B × Capital of B  (CB × TB ): Time of C × Capital of C (CC × TC )

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