PARTNERSHIP -> IMPORTANT FACTS AND FORMULA

I. Partnership: When two or more than two persons run a
business jointly, they are called partners and the deal is
known as partnership.
II. Ratio of Division of Gains:
(i) When investments of all the partners are for the same
time, the gain or loss is distributed among the partners in
the ratio of their investments.
Suppose A and B invest Rs. x and Rs. y respectively for a
year in a business, then at the end of the year:
(A’s share of profit): (B’s share of profit) = x:y.
(ii) When investments are for different time periods, then
equivalent capitals are calculated for a unit of time by
taking (capital * number of units of time). Now, gain or loss
is divided in the ratio of these capitals.
Suppose A invests Rs. x for p months and B invests Rs. y for
q months, then (A’s share of profit) : (B’s share of profit) =
xp : yq.
III. Working and Sleeping Partners: A partner who manages
the business is known as working partner and the one who
simply invests the money is a sleeping partner.

Read More  எதிர்ச்சொல்

Be the first to comment

Leave a Reply

Your email address will not be published.


*