Partnership:- When two or more than two persons invest in the same business jointly then it is called partnership and the persons are called partners. The profit or loss is shared in the ratio of the investments of the partners.
● The same ratio and proportion can be extended for more than two partners.
● If there is loss then write loss in place of profit.
Ex:- A invests Rs. 14000 for 6 months and B invests Rs. 21000 for 4 months then find the ratio of their profit.
Type of Partners:-
(i). Sleeping Partner:- This type of partner puts only money so they only get the profit in the ratio of money invested.
(ii). Active partner:- This type of partner not only puts money in business but also run the business so he gets extra profit for doing so according to conditions and remaining profit is shared in the ratio of their capital.
(Q). A and B started a business by investing 45000 Rs. & 63000 Rs. Find the share of each out of annual profit of Rs. 72000.
Sol: