Partnership and Share of Profit

What you will be able to do

• Split a profit in the ratio of the partners' capitals when investment periods are equal.
• Weight each partner's capital by the number of months it was invested when periods differ.
• Handle a working partner's salary or commission taken before the ratio split.
• Combine mid-year changes in investment into a single capital-months figure per partner.

What is inside this lesson

1. 1How a partnership profit is split
2. 2Equal periods: ratio of capitals
3. 3Unequal periods: capital times months
4. 4Working partners and mid-year changes
5. 5Worked example
6. 6Common mistakes
7. 7Quick revision
8. 8Practice