Banking Exam Notes

Partnership Concepts  Concept 1 : If a group of n persons invested different amount for different period then their profit is the ratio is At1 : Bt2 : Ct3 : Dt4 : .....: Xtn Here first person invested amount A for t1 period, second persons invested amount B for t2 period and so on. Concept 2 : If investments are in the ratio of a : b : c and the timing of their investments in the ratio of x : y : z then the ratio of their profits are in the ratio of ax : by : cz. Concept 3 : If investments are in the ratio a : b : c and profits in the ratio p : q : r, then the ratio of time is p/a :q/b : r/c

 Hello friends, in this post we will discuss the basic concept of partnership, types of partnership. So we will start with the introduction of partnership.  Introduction of partnership When two or more persons make an association and invest money for running a certain business and after certain time they receive profit in the ratio of their invested money and time period then such an association is called partnership and the person involved in the partnership are called partners.  Types of partnership There are two types of partnership which are as follows  1. Simple partnership If all partners invest their different capital for same time period or same capital for different time period then their profit or loss is in the ratio of their investment or time period of investment then such a partnership is called simple partnership.  2. Compound partnership If all partners invest their different capital for different time period , then their profit not only depends on their investment but