Most Important Formula
1. Same Time Investment Trick
Rule: If all partners invest for same time, then profit ratio = capital ratio. Shortcut: Ignore zeros and directly make ratio. Example: 20000 : 30000 = 2 : 3 So profit ratio = 2 : 3
2. Different Time Trick
Rule: If time is different, then use Capital × Time. Shortcut: Write only small numbers: A = 20 × 12 B = 30 × 6 Then compare: 240 : 180 = 4 : 3
3. Joins Later Trick
Rule: If a partner joins later, subtract from total time. Shortcut: If total period is 12 months and B joins after 4 months, then B's time = 12 − 4 = 8 months.
4. Capital Changes Trick
Rule: When capital changes, break into phases. Shortcut: Money-months = C₁×T₁ + C₂×T₂ + ... Example: 10000×5 + 8000×7
5. Working Partner Commission Trick
Rule: Commission or salary is taken first. Shortcut: 1. Find commission 2. Subtract from total profit 3. Divide remaining profit in ratio
6. Super Fast Exam Method
5-Second Method: 1. Remove zeros 2. Multiply Capital × Time 3. Form ratio 4. Divide profit This solves most partnership questions quickly.
Important Facts
- Simple partnership: same time ⇒ profit ratio = capital ratio.
- Compound partnership: different time ⇒ profit ratio = Capital × Time.
- Capital change: split into phases and add all money-months.
- Working partner: commission first, remaining profit later divided by ratio.