5.1 Simple Partnership (same time period)

When all partners invest for the same duration, profit is divided directly in the ratio of their investments.

Example 31: A invests ₹5000 and B invests ₹7000 in a business for one year. If the profit at year-end is ₹3600, find each partner’s share. Ratio of investment = 5000 : 7000 = 5 : 7. Total parts = 12. A’s share = 3600 × 5/12 = ₹1500 B’s share = 3600 × 7/12 = ₹2100