# Concept And Shortcut of Partnership

Introduction:-
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 partnership.
1. Simple Partnership:  In simple partnership, capitals of
partners are invested for the same period of time.
2. Compound Partnership:  In compound
partnership, capitals of partners are invested for the different period of
time.
Basic Formulas
If two partners A and B are investing their money to run

Capital of A : Capital of B = Profit of A : Profit
of B
If two partners A and B are investing their money for
different period of time to run a business then
(Compound Partnership)

Capital of A ×
Time period of A : Capital of B × Time period of B

= Profit of A :
Profit of B
If n partners are investing for different period of time
then
C1T1 : C2T2 :
C3T3 : … : CnTn = P1 :
P2 : P3 : … : Pn
Where C is the capital invested, T is time period of
capital invested and P is profit earned.
Shortcut Methods
Rule 1:
If two partners are investing their money C1 and
C2 for equal period of time and their total profit is P then
their shares of profit are

If these partners are investing their money for different
period of time
which is T1 and T2, then
their profits are

Rule 2:
If n partners are investing their money C1, C2,
…, Cn for equal period of time and their total profit is P then
their shares of profit are

If these partners are investing their money for different
period of time which
is T1, T2,… , Tthen
their profits are

×

Thank You, Your details have been submitted we will get back to you.

Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

OR

Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

OR
Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

Enter the email address associated with your account, and we'll email you an OTP to verify it's you.

Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

## Enter OTP

Please enter the OTP sent to
/6

Did not recive OTP?

Resend in 60s

Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

## Almost there

+91

Join India largest learning distination

What You Will get ?

• Daily Quizes
• Subject-Wise Quizes
• Current Affairs
• previous year question papers
• Doubt Solving session

## Enter OTP

Please enter the OTP sent to Edit Number

Did not recive OTP?

Resend 60

## By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?

## By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?