The document discusses different types of partnerships and formulas for calculating partner profits when capital investments and time periods differ. It defines simple partnerships where profits are split based on investment ratios and compound partnerships where equivalent capital amounts for a single time period are calculated before determining profit ratios. An example is provided to demonstrate calculating individual profits for three partners investing different capital amounts for different time periods where the total partnership profit is given.

1. Q03 Partnership

2. Simple partnership
• When capitals of all the persons are invested
for the same time intervals, the gain or loss in
the business is divided among the partners in
the ratio of their investments.

3. Compound partnership
When capitals of partners are invested for different time
intervals then equivalent capitals are obtained for 1 unit of time
by multiplying the capital with the number of units.
The gain or loss is now divided among partners in the ratio of
these capitals.
Formula for compound partnership is

11. Partnership – 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

12. Partnership – 2
Jack and Jill start a business by investing $ 2,000 for 8 months and $
3,000 for 6 months respectively. If their total profit si $ 510 and then
what is profit of Jill?
Let’s Say C1 = 2000, T1 = 8
C2 = 3000, T2 = 6
P = 510

13. Partnership – 3
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,… , Tn then their profits are

14. Example 1
Raju, Kamal and Vinod start a business by investing Rs 5,000 for 12 months,
Rs 8,000 for 9 months and Rs 10,000 for 6 months. If at the end of the year
their total profit is Rs 2000 then find the profit of each partner.
Let’s Say C1 = 5000, T1 = 12
C2 = 8000, T2 = 9
C3 = 10000, T3 = 6
P = 2000