Best explanation to understand and solve the partnership problems.
This aptitude section is all about the topic PARTNERSHIP. It is the aptitude based on company’s accounts.
It deals with the partnership of two or more persons to take care of a company, their business and their accounts.
Most of the Bank exams and competitive exams ask questions based on partnership aptitude.
To answer these questions you should have a clear knowledge about the concept.
There are certain important formulas that will help you solve them easily. Read this article to know more about partnership aptitudes.
What is partnership?
Partnership refers to a business association where two or more persons join together to run a company and share the profit from the business according to their accepted proportion.
Who is called a partner?
Partner is a person who joins the business with another person and share the profit from the business according to his or her participation and investment.
What are the different types of partnerships?
There are two important types of partnership business. They are as follows.
- Simple partnership
- Compound partnership.
What is simple partnership?
It is a kind of partnership where all the partners will invest their capital at the same period.
In other terms, two or more persons join together to start a business and invest the capital money together and at the same time.
What is compound partnership?
It is a kind of partnership where the partners invest the capital at a different period of time.
What are the different kinds of partners in a partnership?
There are two types of partners in a partnership firm. They are as follows.
- Working or active partner
- Sleeping partner
Who is called a working or active partner?
A person who is actively involved in all the activities of the business and manage the business is called working or active partner.
Who is called a sleeping partner?
A person who only invest money in the business but does not involve or look after the activities of the business is considered to be a sleeping partner.
What are the easy methods to solve partnership problems?
You should know some important formulas and tricks to solve aptitude problems.
Following are some required formulas to work out the problems on partnership aptitude.
1. If two partners invest a capital money of Rs. C1 and Rs. C2 at the same time period and earn a profit money of Rs. P, then share of profit to the partners is given by
Rs (C1 x p) / (C1 + C2) and Rs (C2 x p) / (C1 + C2)
Similarly, If there are three partners who invest a capital money of Rs. C1, Rs. C2 and Rs. C3 at the same period and earn a total profit of Rs. P, then the shares of profit to the partners are given by
Rs (C1 x p) / (C1 + C2 + C3) , Rs (C2 x p) / (C1 + C2 + C3) and Rs (C3 x p) / (C1 + C2 + C3)
2. If two partners invest capital Rs. C1 and Rs. C2 for different periods T1 and T2 respectively and earn total profit Rs. P, shares of the partners in the profit are given by
Rs (C1 x T1 x p) / (C1T1 + C2T2 ) and Rs (C2 x T2 x p) / (C1T1 + C2T2 )
If two partners invest capital Rs. C1 and Rs. C2 for different periods T1 and T2 respectively and earn total profit Rs. P, shares of the partners in the profit are given by
Rs (C1 x T1 x p) / (C1T1 + C2T2 + C3T3), Rs (C2 x T2 x p) / (C1T1 + C2T2 + C3T3) and Rs (C3 x T3 x p) / (C1T1 + C2T2 + C3T3)
3. If two partners invest capital of C1 and C2 for the periods T1 and T2, respectively, the ratio of their profits is given by
Profit of A / Profit of B = C1 x T1 / C2 x T2
Similarly, if three partners A, B, and C invest Rs. C1, Rs. C2 and Rs. C3 for different periods T1, T2, and T3 respectively, then the ratio of their profits is given by
Profit of A : Profit of B : Profit of C
= C1 x T1 : C2 x T2 : C3 x T3
If three partners invest capital in the ratio C1: C2: C3 and earn a profit in the ratio P1:P2: P3, the ratio of the time for which they have invested capital is given by
T1 : T2 : T3 = (P1/C1) x (P2/C2) x (P3/C3)
These are some important formulas to workout the problems in partnership aptitude.
Learn them well and try to solve the given aptitude questions in our website. This will help you to practice for your exams.