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Partnership
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☼ Partnership : When two or more persons run a business jointly, they are called partners and the deal is known as partnership.
If the capitals of the partners are invested for the same time, the partnership is called simple, and if for different periods then it is called compound.
If the period of investment is the same for each partner, then the profit or loss is divided in the ratio of their investments.
■ If A, B and C are partners in a business, then
Investment of A : Investment of B : Investment of C
= Profit of A : Profit of B : Profit of C or Loss of A : Loss of B : Loss of C.
