Partnership
When two or more than two persons are a business jointly they are called partners & the deal is known as partnership.
Ratio of division of gain.
When investments of all the partner are for the same time the gain or loss is distributed among the partners in the ratio of their investment A’s share of profit: B’s share of profit.
When investments are for different time periods then equivalent capital are calculated for unit of time by taking (capital × numbers of units of time) now gain or loss is divided in the ratio of these capitals.
A invest of Rs x for p month & B invest Rs y for q month.
Then profit distributed in xp : yq
Working & sleeping partner
A partner who manages the business is known as working partner & the one who simply invests the money is a sleeping partner.