|Capital: If some one starts a business some amount is necessary, it is called capital.
Partnership: A business is undertaken by two or more persons is called partnership.
Partners: Who runs the business jointly are called partners.
Investment: The money invested by the partners in the business is called investment.
Two partners Jack and Mike started business with capitals $8,000 and $10,000 respectively and made a profit of $2,700. At the end of the year find the share of each.
Investment of Jack = $8,000
Investment of Mike = $10,000
Ratio of the investment of Jack and Mike = 8,000 : 10,000 = 4:5
Period of investment is same, so the profit is divided in the ratio of their investments.
Ratio in which the profit is divided = 4:5
Profit at the end of the year = $2,700
Jack's Profit = (2700*4) / 9 = $1,200
Mike's Profit = (2700*5) / 9 = $1,500
Directions: Solve the following problems. Also write at least 5 examples of your own.