12 questions from actual SBI Clerk papers · all shown free · click option to reveal solution
All partners invest for the same time period 2
Partners invest for different time periods Core
If A invests Rs. X for T1 months and B invests Rs. Y for T2 months:
Key Rules:
- Partners share profit in the ratio of their investments
- Time factor only matters when investment periods are different
- Total profit is distributed among all partners
- Working partners may get additional salary before profit distribution
SSC CGL typically asks questions on profit sharing ratios, finding individual profits, or calculating investment amounts. Common question types include finding one partner's share when total profit is given, or determining investment ratios from given profit shares.
#1 - The Multiplier Method: When dealing with different time periods, multiply each investment by its time period. This gives you the effective investment. Then find the ratio directly. Shortcut Trick #2 - The Unity Method: If you know the ratio and one partner's actual profit, find the value of one unit by dividing that partner's profit by their ratio share.
Then multiply by other partners' ratio shares.
Calculate effective investments A: 20,000 × 12 = 2,40,000 B: 30,000 × 8 = 2,40,000 C: 40,000 × 6 = 2,40,000
Find ratio Ratio = 2,40,000 : 2,40,000 : 2,40,000 = 1:1:1
Calculate A's share A's share = (1/3) × 61,800 = Rs. 20,600 Worked Example 2: P and Q enter into partnership. P invests Rs. 40,000 and Q invests Rs. 60,000. After 6 months, P withdraws Rs. 10,000. If the profit at year-end is Rs. 33,000, find Q's share.
Calculate P's effective investment First 6 months: 40,000 × 6 = 2,40,000 Next 6 months: 30,000 × 6 = 1,80,000 P's total = 4,20,000
Calculate Q's effective investment Q invests for full year: 60,000 × 12 = 7,20,000
Find ratio P : Q = 4,20,000 : 7,20,000 = 7:12
Calculate Q's share Q's share = (12/19) × 33,000 = Rs. 20,842 (approximately) Shortcut Trick #3 - The Percentage Method: If working with percentages, convert everything to the same base (usually 100) before calculating ratios.
Alert: The #1 mistake students make is forgetting to account for time differences in compound partnerships. Many students only consider the investment amounts and ignore the time factor completely. Always check if all partners invested for the same duration before applying simple partnership formulas.
When time periods differ, you MUST multiply investment by time to get the effective investment ratio.