In this section, the following topics are discussed with examples

  • Introduction
  • Types of Partnership
  • Simple Partnership 
  • Compound Partnership

Introduction

Partnership is the major part of ratios and 100% it deals with ratio. When more than one person agree to invest their money to run a business or firm then this kind of agreement is called partnership. The persons involved in the partnership are called partners.

There are two types of partners.

  1. Passive Partner: Sleeping partner is the person who provides only investment but does not take part in running the business.
  2. Active Partner: Working partner is the person who not only invests the money but also takes part in running the business. For this work he is paid some salary or some percent of profit in addition.

Types of partnership:

There are two types of partnership.

  1. Simple Partnership: In simple partnership, capitals of partners are invested for the same period of time, then their profit share also will be of the same ratio of their investment. say , If two partners A and B are investing their money to run a business then

Capital of A : Capital of B = Profit of A : Profit of B

Example 1:

Three partners, A,B,C invest Rs.36000, Rs45000, Rs.54000 respectively. In a business . Out of a total profit of Rs.37500, c’s share is.

Sol:
  The investment made by these three people if we write it in a ratio it will be oof the ratio

A : B : C = 36000 : 45000 : 54000 = 36 : 45 : 54

Simplifying it we get as 4 : 5 : 6

So c’s share is 6 parts of the total 15 parts i.e., 37500

15x / 6 = 37500

x= 37500 x (6 / 15) = 15000.

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DON ZIMMER

Example 2:

X and Y invested in a business. They earned some profit which they divided in the ratio of 2:3. If X invested Rs.40000, the amount invested by Y is 

Sol:

2 / 3 = 40000 / x

By looking at the above equation if 2 parts of the total share 40000 then three parts of that will be 60000 so the answer is 60000.