Partnership
Partnership
Partnership problems involve two or more people who invest capital in a business and share the resulting profit (or loss). The key principle is that profit is divided in proportion to each partner's equivalent capital — the product of investment and time.
Key Idea
Profit is split in ratio of equivalent capital (investment × time). Simple partnership: same duration → use capital only. Compound partnership: different durations → multiply capital × months.
Core Formulas
Simple Partnership Ratio
Profit ratio = Investment_A : Investment_B
When all partners invest for equal time periods.
Compound Partnership
Equivalent capital = Investment × Time (months)
When partners invest for different durations.
Profit Share
A's profit = Total Profit × (A's equiv. capital / Total equiv. capital)
To find an individual partner's profit share from the total.
Working Partner Salary
Remaining profit = Total profit − Working partner's salary; split remaining by capital ratio
When a working partner receives a fixed monthly salary before the profit is split.
New Partner Joining
A's months = months from start; B's months = (12 − joining month + 1)
When a partner joins or leaves partway through the year.
Relevant Exams
2–3 questions per paper in SSC CGL and IBPS PO. Tests both simple and compound partnership. Often paired with ratio questions.