Partnership – Profit Sharing Ratios for SSC CGL Quant

intermediate 18 min read

Concept

Partnership, at its core, is a weighted-ratio problem. Two or more people pool money, and at the end of a period, they split profits in proportion to what each person actually contributed — not just the amount invested, but the amount multiplied by the time for which it was invested.

Think of it this way: if you park ₹1,00,000 in a business for 12 months and your friend parks ₹2,00,000 for only 3 months, who contributed more? The raw numbers say your friend, but the weighted reality says you did — ₹12,00,000 of capital-months versus ₹6,00,000. That ratio, 2:1, becomes the profit-sharing ratio.

This is the entire engine of partnership problems:

Profit share ∝ Capital × Time

Everything else — sleeping partners, different joining dates, changed investments mid-period — is just a variation of this one idea.

Two types of partners you will encounter:

The analogy that works: imagine profit as a shared pizza. Each person's slice is proportional to how much dough (capital) they kneaded and for how long (time). If someone joined late, they kneaded for fewer hours — smaller slice, regardless of how much dough they brought.

SSC CGL tests this topic almost every year. The questions are clean — no tricks hidden in the language, only in the arithmetic. Speed comes from computing capital-months quickly and reducing ratios before multiplying into the total profit.


Deep Dive

The Capital-Months Formula

For each partner, compute:

Effective Contribution=Capital×Time (in months)\text{Effective Contribution} = \text{Capital} \times \text{Time (in months)}

The profit-sharing ratio is:

Ratio=C1T1:C2T2:C3T3:\text{Ratio} = C_1 T_1 : C_2 T_2 : C_3 T_3 : \ldots

Once you have the ratio, a partner's share is:

Partner’s profit=Partner’s ratio partSum of all ratio parts×Total Profit\text{Partner's profit} = \frac{\text{Partner's ratio part}}{\text{Sum of all ratio parts}} \times \text{Total Profit}

Handling Different Joining Dates

This is where most errors happen. If a business runs for N months total and a partner joins k months late, that partner's time is N - k months, not N.

Look — always draw a timeline for problems with three or more partners. Mark when each person joined and calculate individual time periods carefully before multiplying by capital.

Example walkthrough: A starts in January. B joins in May (4 months later). C joins in September (8 months later). Business ends in December.

Now multiply each by their capital to get the ratio.

When Investment Changes Mid-Period

Some problems give you a partner who invests an amount for part of the year and a different amount for the rest. Here, split that partner's contribution into two segments and add them.

If Partner Y invests ₹P for t₁ months, then changes to ₹Q for t₂ months:

Y’s effective contribution=P×t1+Q×t2Y\text{'s effective contribution} = P \times t_1 + Q \times t_2

This is precisely what the second PYQ in this set tests — do not try to average the amounts, calculate each segment separately.

Reducing the Ratio Early

A critical speed habit: reduce the capital-months ratio before computing profit shares. Dividing out common factors early saves you from multiplying large numbers and then simplifying.

Here's the trick — after computing all capital-months figures, find the GCD of all values and divide through. You work with smaller numbers for the final fraction calculation.

Example: Capital-months are 9,60,000 : 9,60,000 : 6,40,000.

Divide everything by 3,20,000 → ratio becomes 3 : 3 : 2. Now the arithmetic is trivial.

Working Partners and Salary

If a working partner takes x% of profit as salary first:

  1. Calculate the working partner's salary: Salary = x% of Total Profit
  2. Remaining profit: Total Profit - Salary
  3. Split remaining profit in the capital-months ratio between all partners (including the working partner).
  4. Working partner's total = Salary + their ratio share of the remainder.

SSC CGL rarely makes this multi-step, but if the question says "A gets 10% of profit for managing the business before profit is divided," that is the structure to apply.

Annual Percentage Return Variant

Occasionally, the question gives interest rates instead of absolute capitals. Treat Capital × Rate as the effective contribution (time is uniform, so it cancels). The ratio becomes:

C1r1:C2r2C_1 r_1 : C_2 r_2

This is just the capital-months idea with rate replacing time.


Memory Tricks & Shortcuts

patternCapital-Months Table

Before any calculation, write a two-column table: | Partner | Capital × Time |. Fill it in, then divide by GCD. This structured habit prevents the most common error — computing ratios from raw capital figures without accounting for time.

Standard unstructured approach: 60-90 seconds of mental juggling with risk of error. Structured table: 30-40 seconds, near-zero error rate. The table forces you to separate "what they invested" from "how long they invested it," which is exactly the distinction these questions test.

patternSpot the Equal Capital-Months Trap

When two partners' capital × time values are equal, their profit ratio is 1:1 — regardless of how different the raw numbers look. Recognize this pattern instantly.

Example: A invests ₹80,000 for 9 months = 72,00,000. B invests ₹1,20,000 for 6 months = 72,00,000. Ratio = 1:1. Standard approach: compute both products, simplify. Shortcut recognition: as soon as you see two products are equal, write 1:1 and move to the profit split. Saves 2-3 computational steps. The fourth PYQ in this set is exactly this trap.

estimationScale Down Before Multiplying

Before computing capital × time, cancel zeros from the capital figures. If all capitals are multiples of ₹10,000, divide each by 10,000 first, then multiply by time.

Example: ₹80,000 for 12 months, ₹1,20,000 for 8 months, ₹1,60,000 for 4 months. Scale down: 8, 12, 16. Now: 8×12=96, 12×8=96, 16×4=64. Ratio = 96:96:64 = 3:3:2. You worked with single/double digit numbers throughout instead of hundreds of thousands. Cuts arithmetic time by 40-50% and reduces transcription errors.

substitutionProfit Fraction via Ratio Part

Instead of computing the full ratio first and then dividing total profit, identify a partner's fraction directly.

If the ratio is A:B:C = 3:3:2, total parts = 8. C's fraction = 2/8 = 1/4. Apply directly: C's share = (1/4) × Total Profit. No need to separately find A's and B's shares unless asked. For a "find one partner's share" question, this shaves off one unnecessary computation. Standard: compute all three shares, identify C's. Shortcut: compute only C's fraction × profit. Saves 1 multiplication and 1 subtraction.

patternLate Joiner Time = Total Period minus Delay

When a partner joins k months after the business starts, and the total period is N months, their time is always N - k. Write this as a subtraction the moment you read the problem.

For Jatin in the first PYQ: total period = 24 months, delay = 8 months, so time = 24 - 8 = 16 months. Done in one line. The error trap is using 8 (the delay) as the time, or using 24 - 8 = 16 but then second-guessing whether to add or subtract. Commit to N - k every single time. Eliminates a common 30-second re-reading loop.


Fast-Solving Framework

When you see a partnership question in the exam hall, run through this decision path:

Step 1 — Count partners and identify joining dates. Write down each partner's capital and the month they joined.

Step 2 — Compute each partner's time period. Time = Total period - Months before joining. If investment changes mid-period, split into two rows.

Step 3 — Scale down capitals. Cancel common zeros (divide by ₹10,000 or ₹1,000 as appropriate).

Step 4 — Multiply scaled capital by time. Write capital-months for each partner.

Step 5 — Find GCD and simplify ratio. Work with the simplified ratio going forward.

Step 6 — Check if question asks for ratio or actual rupee amount. If ratio, stop here. If rupee amount, compute (partner's ratio part / total parts) × total profit.

Time budget: Simple two-partner problems — under 60 seconds. Three-partner with different joining dates — 90 seconds. If you cross 2 minutes on any partnership problem, something is wrong with your Step 2 or Step 5. Stop, re-check the timeline.


Solved PYQs

Why this question: The classic "one partner joins late" structure. Tests whether you use the full 24-month period for the late joiner or correctly subtract the delay.

Previous Year Questionपिछले वर्ष का प्रश्न2025
Gautam started a business with a sum of ₹60,000. Jatin joined him 8 months later with a sum of ₹35,000. At what respective ratio will the two share the profit after two years?
  1. 18 : 7
  2. 12 : 7
  3. 15 : 7
  4. 5 : 7
Solutionसमाधान
Gautam invests for 24 months; Jatin invests for 24-8=16 months. Ratio = (60000×24):(35000×16) = 1440000:560000 = 144:56 = 18:7.

Solving path: Total period = 2 years = 24 months. Gautam invested from month 1, so his time = 24 months. Jatin joined 8 months later, so his time = 24 - 8 = 16 months. Scale down capitals: 60 → 6, 35 → 3.5 (or keep as 60 and 35). Capital-months: Gautam = 60 × 24 = 1440, Jatin = 35 × 16 = 560. Ratio = 1440 : 560. Divide by 80 → 18 : 7. Answer: 18 : 7.


Why this question: A more complex variant where each partner's investment changes at different points — you must split each contribution into segments.

Previous Year Questionपिछले वर्ष का प्रश्न2025
X invested for 2 years at some rate, Y invested for 3 and 1.5 years, Z invested for 5 and 3 years. Profit sharing ratio of X:Y:Z is?
  1. 3:3:5
  2. 3:3:6
  3. 3:3:4
  4. 3:3:7
Solutionसमाधान
X's ratio = 2×18 = 36; Y's ratio = 3×6 + 1.5×12 = 18+18 = 36; Z's ratio = 5×3 + 3×15 = 15+45 = 60. Simplified: 36:36:60 = 3:3:5.

Solving path: The question implies specific investment amounts at different rates/times. Following the explanation's arithmetic: X's capital-months = 2 × 18 = 36. Y's = 3 × 6 + 1.5 × 12 = 18 + 18 = 36. Z's = 5 × 3 + 3 × 15 = 15 + 45 = 60. Ratio = 36 : 36 : 60. Divide by 12 → 3 : 3 : 5. Answer: 3 : 3 : 5.


Why this question: Three partners with staggered joining times. Tests your ability to correctly identify each partner's active months within a 12-month window.

Previous Year Questionपिछले वर्ष का प्रश्न2025
Arvind started a business by investing ₹80,000. After 4 months, Bhavin joined with ₹1,20,000. At the end of 8 months from the start, Chandan joined with ₹1,60,000. If the total profit is ₹1,05,000 at the end of the year, find the share of Chandan.
  1. ₹26,500
  2. ₹26,250
  3. ₹26,200
  4. ₹26,000
Solutionसमाधान
Arvind's capital-months: 80000×12=9,60,000. Bhavin's: 1,20,000×8=9,60,000. Chandan's: 1,60,000×4=6,40,000. Total=25,60,000. Chandan's share = (6,40,000/25,60,000)×1,05,000 = (1/4)×1,05,000 = ₹26,250.

Solving path: Arvind joins at start (month 0) → 12 months active. Bhavin joins at month 4 → 12 - 4 = 8 months active. Chandan joins at month 8 → 12 - 8 = 4 months active. Scale down capitals by ÷ 10,000: 8, 12, 16. Capital-months: 8 × 12 = 96, 12 × 8 = 96, 16 × 4 = 64. Total = 256. Chandan's fraction = 64/256 = 1/4. Share = (1/4) × 1,05,000 = ₹26,250. Answer: ₹26,250.


Why this question: The equal capital-months trap. Raw capitals and times look very different, but the products are equal — leading to a 1:1 ratio that many students miss.

Previous Year Questionपिछले वर्ष का प्रश्न2025
A and B start a business. A invests ₹80,000 for 9 months, B invests ₹1,20,000 for 6 months. What is B's share of a ₹45,000 profit?
  1. ₹26,500
  2. ₹28,000
  3. ₹22,500
  4. ₹36,000
Solutionसमाधान
A's capital-months = 80,000×9 = 7,20,000. B's capital-months = 1,20,000×6 = 7,20,000. Ratio = 1:1. B's share = ₹45,000/2 = ₹22,500.

Solving path: Scale down capitals by ÷ 10,000: A = 8, B = 12. A's capital-months = 8 × 9 = 72. B's capital-months = 12 × 6 = 72. Ratio = 72 : 72 = 1 : 1. B's share = (1/2) × 45,000 = ₹22,500. Answer: ₹22,500. Note: many students see ₹1,20,000 > ₹80,000 and assume B gets more — the time difference cancels this completely.


Common Mistakes


Related Topics


Practice on SarkariRise

Sign up + get 3 free mocks →