Published: 05 Aug 2019

**1. Partnership** :

When two or more people joins hands with a common goal to attain profits or run a business jointly, they are called ** Partners** and the deal is known as

**2. Ratio of Division of Gains :**

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.

**3. Working and Sleeping partners :** A partner who manages the business is known as a **working partner** and the one who simply invests the money is a **sleeping partner .**

**Quicker Method to solve the Question**

If the period of investment is the same for each partner, then the profit or loss is divided in the ratio of their investment.

If A and B are partners in a business, then

*Investment of A / Investment of B = Profit of A / Profit of B *

*Investment of A / Investment of B = Loss of A / Loss of B*

If A,B and C are partners in a business, then

*Investment of A : Investment of B : Investment of C = Profit of A : Profit of B : Profit of C*

*Investment of A : Investment of B : Investment of C = Loss of A : Loss of B : Loss of C*

https://gyangossip.com/quantitative-aptitude/mock-test/T4101

https://gyangossip.com/quantitative-aptitude/mock-test/T8942