Quantitative Aptitude – Partnership
Partnership is a very important chapter for competitive exams. Aptitude part of almost every competitive exam consist at least one question form Partnership. Also partnership is related to few other advance topics. So, you need to learn this topic very carefully. This will help you for advance topics like profit and loss, ratio, etc.
One more thing, Partnership is closely related to Ratio. So, we recommend you to please go through the Ratio chapter and learn ratio.
What is Partnership ?
Definition: When Two or more people jointly run a business by investing money then they are called Partners and the deal between them is called Partnership.
Let’s explain this,
Suppose A and B run a business. A invest Rs.X in the business and B invest Rs.Y in the business.
So, A and B is known as Partners.
And the deal between them is that they will share their Profit or Loss in the ratio of,
- Investment of A : Investment of B = X : Y.
This is called Partnership.
Basic Rules
Rule 1: When all the partners are invested money in the business for the same amount of time, then profit or loss is divided among partners in the ratio of investment.
Suppose, A and B invested Rs.X and Rs.Y for one year in their business then their share of profit or loss will be,
- A’s share of profit or loss : B’s share of profit or loss = X : Y
Rule 2: When all the partners are invested money in the business for the different amount of time, then profit or loss ratio is calculated as capital multiplied by length of investment.
Suppose, A and B invested Rs.X and Rs.Y for ‘m’ years and ‘n’ years in their business then their share of profit or loss will be,
A’s share of profit or loss : B’s share of profit or loss = X*m : Y*n
So, we hope you can now do any kind of problem using the above rule. If you need any farther help on this chapter, then please let us know. We will discuss on those problems here in www.AptitudeTricks.com.