Mathematics
Partnership Profit Share
Distribute profit among partners according to investment and time.
Profit Share ∝ Capital × Time
Formula Explanation
The ratio of profits is the same as the ratio of (capital × time).
Variables Explained
Capital = money invested; Time = period of investment.
Solved Example
A invests ₹6000 for 8 months, B invests ₹8000 for 6 months. Find profit ratio.
Ratio = (6000×8) : (8000×6) = 48 : 48 = 1 : 1.