🤝 Partnership - Formula Sheet

🎯 Basic Formulas

Profit Sharing Ratio

Profit Ratio = Investment₁ × Time₁ : Investment₂ × Time₂ : ...

Individual Share

Share = Total Profit × (Individual Factor) / (Sum of All Factors)

Working Partner’s Commission

Commission = Total Profit × Commission Rate / 100
Remaining Profit = Total Profit - Commission

📊 Different Cases

Equal Investment, Different Time

Share Ratio = Time₁ : Time₂ : Time₃

Different Investment, Equal Time

Share Ratio = Investment₁ : Investment₂ : Investment₃

Different Investment, Different Time

Share Ratio = I₁ × T₁ : I₂ × T₂ : I₃ × T₃

🔢 Special Cases

Sleeping Partner

Sleeping Partner Share = Investment × Time
Working Partner Share = Investment × Time + Commission

Investment Changes

For period 1: I₁ for T₁ months
For period 2: I₂ for T₂ months
Total Investment = I₁ × T₁ + I₂ × T₂

Salary to Working Partner

Net Profit = Total Profit - Salary - Commission
Remaining profit shared in investment ratio

⚡ Quick Calculations

Monthly Investment

If investment changes during year:
Annual Investment = Σ(Investment × Months)

Missing Partner

If one partner leaves mid-year:
Consider only their active months

📝 Solving Steps

1. Identify investments and time periods
2. Calculate factors (Investment × Time)
3. Find the ratio
4. Apply to total profit
5. Consider commission/salary if applicable

🔍 Important Notes

1. Time always in same units (months/years)
2. Investment = capital contribution
3. Commission usually % of profit
4. Salary fixed amount, not percentage

Master Partnership - Investment × Time determines share! 🤝