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Ratio of Division of Gains:
1.When the investments of all the partners are do 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
2.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 working partner and the one who
simply invests the money is a sleeping partner.
FORMULA
1.When investments of A and B are Rs x and Rs y 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
2.When A invests Rs x for p months and B invests Rs y for q months,then
A's share profit:B's share of profit=xp:yq
