Partnership Model 1 — Simple Partnership

Partnerships · 20 min

Aptitude · Partnerships · Model 1

When the clock is the same for everyone, drop it

In Model 1 every partner is in for the whole period, so the months are a common factor in every capital-month product and cancel out of the ratio. What is left is the ratio of the capitals, and the whole model is the parts method applied to it.

Set the capitals and watch the parts do the work
Equal times means the months cancel, so profit ratio = capital ratio. This is the only model where you may ignore time, and only because it is identical for all.

01 The idea

The 12 that cancels

Ram puts in ₹30,000 and Shyam puts in ₹50,000. Both stay for the full year. The capital-month products are 30,000 × 12 and 50,000 × 12, and the 12 appears in both.

A factor common to both sides of a ratio cancels. So 360,000 : 600,000 is the same ratio as 30,000 : 50,000, which is 3 : 5. The time did not disappear from the problem; it dropped out of the ratio because it was equal. Change Shyam’s months to ten and it comes straight back.

That is worth being precise about, because “in Model 1 you ignore time’’ is a sentence students carry into Model 2 and lose marks with. The honest version is: when every partner supplies the same number of months, the ratio of the products equals the ratio of the capitals.

What is left is the parts method. Reduce 30,000 : 50,000 to 3 : 5, add the parts to get 8, divide the ₹16,000 profit once to get ₹2,000 a part, and read off ₹6,000 and ₹10,000. Two divisions in the whole question, and the second one is the check.

Reduce the capitals to a small whole-number ratio, add the parts, divide the profit once, then multiply each partner’s parts.
Simple partnershipEvery partner is in for the same period, usually the full year. Nobody joins late, leaves early, adds capital or withdraws it, so T is a common factor.
PartsThe sum of the reduced ratio terms. In 3 : 5 there are 8 parts, so the profit is cut into eight equal pieces and each partner takes a whole number of them.
Reverse questionA question that hands you one share, or the gap between two shares, instead of the total. Both give the value of one part directly, which is all you need.

02 Worked example

Ram ₹30,000, Shyam ₹50,000, profit ₹16,000

This sum runs through the whole lesson. Ram and Shyam start a business with ₹30,000 and ₹50,000. At the end of the year the profit is ₹16,000. Find each share.

PartnerCapitalPartsShare
Ram₹30,0003₹6,000
Shyam₹50,0005₹10,000
Total₹80,0008₹16,000
1
Check the timeline before anything elseNothing in the question says either partner joined late or left early, so both supplied twelve months. That is what licenses the next step.(30,000 × 12) : (50,000 × 12) = 30,000 : 50,000
2
Strip the ratio to whole numbersCancel the three shared zeros, then divide by the 10 still in common. Small numbers are the point.30,000 : 50,000 → 30 : 50 → 3 : 5
3
Add the partsThe parts are the denominator for the entire question, so count them carefully once rather than twice.3 + 5 = 8 parts
4
Value one partOne division. If this lands on an awkward number, suspect the ratio before you suspect the division.16,000 / 8 = ₹2,000 per part
5
Multiply each partner’s partsRam has 3 parts and Shyam has 5. Add the shares back and they must return ₹16,000.Ram = 3 × 2,000 = ₹6,000, Shyam = 5 × 2,000 = ₹10,000

Notice what never appeared: the number 12. It cancelled at step one and the rest of the sum was a ratio and a division. Model 2 is this exact procedure with one partner’s 12 replaced by a smaller number, so the ratio no longer reduces to the capitals.

03 The method

One rule, five question shapes

The rule is one line. What varies is which of the four quantities — capitals, ratio, one share, total profit — the question withholds.

Equal times ⇒ profit ratio = capital ratio. Then one part = total profit / total parts and share = parts × one part.
Whatever you are given, convert it to the value of one part. A total profit divides by all the parts. One partner’s share divides by their own parts. The difference between two shares divides by the gap in their parts. All three roads reach the same number, and from there every other figure is a multiplication.
Question shapeWhat you are givenThe move
Find a sharecapitals and the total profitparts × profit / total parts
Find the total profitone partner’s shareshare / its parts × total parts
Find the total profitthe gap between two sharesgap / gap in parts × total parts
Find a missing capitalone capital and the profit ratiocapital ratio = profit ratio
Fractions of the capitalA has 1/3, B has 1/4, C the resttake the LCM as the total
Percentage of the remainingX takes 50%, Y takes 30% of the rest30% of 50, not of 100

05 Cheat sheet

Model 1 on one page

The rule, the three roads to the value of one part, and the two readings that get marked wrong.

CaseRuleOn the lesson sum
Equal timesprofit ratio = capital ratio3 : 5
One partprofit / total parts16,000 / 8 = 2,000
Given one shareshare / its parts6,000 / 3 = 2,000
Given the gap between sharesgap / gap in parts4,000 / 2 = 2,000
Fractions of the total capitalLCM of the denominators1/3 and 1/4 → total 12
Percent of the remaining capitalread the base carefully30% of 50 is 15, not 30
Using unequal times herewrong modelthat is Model 2 onward
Time did not vanish, it cancelledIt is a common factor of every product, which is a different thing from being absent. Say it the second way and Model 2 will not catch you out.
One part is the whole questionTotal profit, a single share, or the difference between two shares — each one gives you the value of a part in one division. Everything else follows by multiplication.
An awkward part value is a warningExam sums are built so the profit divides by the total parts exactly. If 1 part comes out to a recurring decimal, re-check the cancelling before you re-check the division.

06 Where & why

Where this shows up

Model 1 is the easy mark in the chapter and it appears in every paper that carries partnerships at all.

TCS NQT · Cognizant
Direct three-capital splits

Capitals chosen so the ratio cancels to single digits. The work is in the cancelling and nothing else.

Bank PO · RRB
Difference-of-shares questions

“A gets ₹3,200 more than C, find the total profit.” The gap in parts is the only thing you need to spot.

SSC CGL
Fraction and percentage capitals

“A invests one-third, B invests one-quarter, C the rest.” Take the LCM as the total capital and the fractions become whole parts.

Option elimination
Divisibility as a shortcut

If A holds 7 parts out of a whole-number split, A’s share is a multiple of 7. On a multiple-choice paper that sometimes settles the question without any arithmetic.

Model 1 is not a separate technique. It is the golden equation with the times equal, and the moment one partner’s months differ you are in Model 2 with the same five steps.

07 Interview questions

What gets asked

Ten, running from the definition to the reverse questions that make up most of the marks.

What is a simple partnership?
One where every partner’s capital is in for the same period. Because the time is a common factor of every capital-month product it cancels out of the ratio, so the profit is shared in the ratio of the capitals alone.
Ram invests ₹30,000 and Shyam ₹50,000 for a year. Split a ₹16,000 profit.
₹6,000 and ₹10,000. The ratio is 30,000 : 50,000 = 3 : 5, which is 8 parts, so one part is 16,000 / 8 = ₹2,000. Ram takes 3 parts and Shyam takes 5.
Is it correct to say time is irrelevant in Model 1?
No, and the distinction matters. Time is equal, so it cancels out of the ratio — it is a common factor, not an absent quantity. Students who learn it as “ignore time” carry that into Model 2, where one partner’s months differ and the cancelling no longer happens.
A and B invest in the ratio 5 : 8 and A’s share is ₹15,000. Find the total profit.
₹39,000. A’s 5 parts are worth ₹15,000, so one part is ₹3,000, and the total is 13 parts — 13 × 3,000. Being handed one share is as good as being handed the total, because either one gives you the value of a part.
Two partners invest in the ratio 4 : 9 and the difference in their shares is ₹15,000. Find the total profit.
₹39,000. The gap is 9 − 4 = 5 parts, so one part is 15,000 / 5 = ₹3,000, and 13 parts is ₹39,000. Reach for the gap in parts whenever the question gives you a difference rather than a total.
A invests one-third of the capital, B one-quarter, and C the rest. How do you set that up?
Take the total capital as the LCM of the denominators, here 12. Then A is 4, B is 3 and C is 12 − 7 = 5, so the ratio is 4 : 3 : 5. Choosing the LCM as the total is what keeps every term a whole number.
X invests 50% of the capital, Y invests 30% of the remaining, and Z the rest. Find the ratio.
10 : 3 : 7. Take the total as 100: X is 50, the remainder is 50, and Y is 30% of that 50 = 15, so Z is 35. The trap is reading Y as 30% of 100 — the base is the remainder, and the question says so.
If A invests twice as much as B and B thrice as much as C, what is the ratio?
6 : 3 : 1. Set the smallest to 1: C = 1, B = 3, A = 6. Working from the smallest end keeps you out of fractions, and it also removes the risk of inverting one of the two statements.
How is Model 1 different from Model 2?
Only in the times. Model 1 has every partner in for the same period so the profit ratio reduces to the capital ratio; Model 2 has at least one partner in for fewer months, so you must form capital × time for each. The five steps after the ratio are identical in both.
When would you actually meet a true Model 1 situation?
When all partners fund a venture at the start and none of them changes their stake before the accounts close — a one-year joint contract, or a fund with a single subscription window. It is genuinely common, but most real firms drift into Models 3 to 5 within a year, because someone adds money, withdraws it, or starts drawing a salary.

08 Practice problems

Six on the capital ratio

Four of these are direct and two withhold the total profit. In every one, get to the value of one part as fast as you can.

Three capitals, one share

Easy
Amit, Rahul and Sumit invest ₹25,000, ₹35,000 and ₹45,000. The year’s profit is ₹21,000. Find Rahul’s share.
Follow-up
The capitals look unfriendly until you cancel the zeros and then the 5. Doing the cancelling in two stages is faster and safer than hunting the whole common factor at once.
Show the hint
Drop three zeros, then divide by 5. The parts should total 21.

Given one share

Easy
Neha and Vijay invest in the ratio 5 : 8. Neha’s share of the annual profit is ₹15,000. Find the total profit.
Follow-up
The total is withheld, so the usual first division is unavailable. One partner’s share and her own parts are enough to price a part.
Show the hint
5 parts are worth ₹15,000. How much is one part, and how many parts is the whole profit?

Given the gap

Medium
Two partners invest in the ratio 4 : 9. The difference between their profit shares is ₹15,000. Find the total profit and then each share.
Follow-up
Neither the total nor either individual share is given — only a difference. The gap in parts is the bridge, and it is easy to use the wrong number of parts here.
Show the hint
9 − 4 = 5 parts is what the ₹15,000 buys.

Fractions of the capital

Medium
A invests one-third of the total capital, B invests one-quarter, and C invests the rest. The profit is ₹14,400. Find C’s share.
Follow-up
C’s fraction is not stated and has to be built by subtraction. Choosing the total as 12 rather than 1 keeps every partner on a whole number of parts.
Show the hint
LCM of 3 and 4 is 12. A is 4 parts, B is 3, so what is C?

Percent of the remaining

Medium
X invests 50% of the total capital, Y invests 30% of the remaining capital, and Z invests the rest. The profit is ₹60,000. Find Z’s share.
Follow-up
The phrase “of the remaining” changes the base from 100 to 50, and the whole question turns on noticing it. Compute Y before Z, and Z by subtraction.
Show the hint
Y is 30% of 50, not 30% of 100. Then Z is whatever is left of the 50.

Two ways to be told a ratio

Hard
(a) A, B and C invest such that 2 × A’s capital = 3 × B’s = 4 × C’s. The profit is ₹52,000; find the difference between A’s and C’s shares. (b) Instead, A contributes one-third of the total capital and B contributes as much as A and C together; the profit is ₹84,000, so find C’s share. (c) Explain in one sentence why the ratio in (a) is 6 : 4 : 3 and not 2 : 3 : 4.
Follow-up
Both halves hide the ratio behind a relation rather than stating it, and the two relations invert in opposite directions. Part (c) is the marks: a multiplier on a capital divides the ratio term, which is the single most common inversion error in the chapter.
Show the hint
For (a) set all three products to the LCM of 2, 3 and 4. For (b), B equalling A + C forces B to be exactly half the total.