Partnership: When 2 or person run a bussiness jointly , they are called partners and the deal is known as partnership
Ratio of Division of Gains:
1) When all partners invest amount for same perviod of time then their gain or loss is distributed based on the ratio of their investment.
Example : if A invests Rs. x and B invests Rs. y then their profit ratio is
(A's share of profit ) : (B's share of profit) = x: y
2)When investments are of different time period for each partner .Then equivalent capital is calculated for each partner by taking
(capital x time period of investment )
now the gain or loss is divided in the ratio of these capitals.
Example: if A invests Rs.x for p months and B invests Rs.y for q months
(A's share of profit):(B's share of profit)= xp : yp
