Partnership – Profit Sharing for SSC MTS (Ratio of Capital & Time)

intermediate 14 min read

Concept

Partnership, in the context of SSC MTS Quant, is essentially a problem of fair division. Two or more people pool money into a business, run it for some period, and then split the profit in proportion to their contribution — not equally, but fairly.

Here's the core idea: if you put in more money, or if your money stayed in the business longer, you deserve a bigger slice of the profit. That's it. The entire chapter is built on this one principle.

Think of it like renting a shared flat. If Rohit pays ₹6,000 rent and Amit pays ₹4,000, and they get back a ₹5,000 security deposit at the end, it would be unfair to split the refund equally. Rohit should get ₹3,000 (3/5 of ₹5,000) and Amit gets ₹2,000 (2/5 of ₹5,000). Partnership works the same way.

The key variable that changes things is time. If everyone invests for the same duration, you only compare the capital amounts. If people invest for different durations, you multiply capital by time to get the effective investment (also called weighted capital), and then compare those products.

A sleeping partner (or silent partner) is someone who only contributes capital but does not actively run the business. SSC MTS questions sometimes distinguish between an active partner, who may receive a fixed salary or commission out of total profit before the remainder is split by ratio, and a sleeping partner who only gets the ratio-based share. When active partner commission is mentioned, deduct it first, then split the remainder.

The ratio of profit shares equals the ratio of effective investments. That one sentence is the entire chapter.


Deep Dive

Case 1: Same Time Period, Different Capital

When all partners invest for the same duration (usually the full year), time cancels out and you only compare capital amounts.

Profit ratio = Capital₁ : Capital₂ : Capital₃ ...

Working process:

  1. Write each capital amount.
  2. Simplify the ratio by finding GCD.
  3. Divide total profit in that ratio using the fraction method.

Partner A's share = (A's ratio part / Total ratio parts) × Total Profit

Look — simplifying the ratio before multiplying saves you from large-number arithmetic. Always reduce first.

Case 2: Different Time Periods, Different Capital

This is the main variation tested. You cannot just compare capitals.

Effective Investment = Capital × Time (in same units)

Profit ratio = (C₁ × T₁) : (C₂ × T₂) : (C₃ × T₃)

Steps:

  1. Compute each partner's effective investment.
  2. Find the ratio of these products.
  3. Simplify.
  4. Divide profit.

Important: Keep time in the same unit throughout. If one person invests for 3 months and another for 1.5 years, convert both to months (3 months and 18 months) before multiplying.

Case 3: Reverse Problem — Finding Capital or Time

Sometimes the question gives you the profit ratio and asks you to find one of the missing values (a capital amount or a time period).

The logic simply runs backwards:

Profit ratio = Capital × Time

So if you know the profit ratio and one partner's capital and time, you can set up an equation for the unknown.

For two partners P and Q:

(P's capital × P's time) / (Q's capital × Q's time) = P's profit share / Q's profit share

Cross-multiply and solve for the unknown. These are the "harder" looking questions on SSC MTS, but they are straightforward algebra once you write out this ratio equation.

Case 4: Active Partner Deduction

If an active partner earns a fixed commission (say 10% of total profit) for managing the business:

  1. Deduct the commission from total profit.
  2. Split the remaining profit in the capital ratio.
  3. Add the commission back to the active partner's share.

SSC MTS tends to keep this simple — the commission is usually stated as a percentage of total profit or a fixed rupee amount.

Simplifying Ratios Efficiently

When capitals are messy numbers like ₹63,000 and ₹42,000, divide both by their GCD immediately:

GCD(63000, 42000) = 21000

63000 / 21000 = 3 42000 / 21000 = 2

Ratio = 3:2. Now you're working with small numbers for the rest of the problem. This single habit saves 20-30 seconds per question.

For three-partner effective investments like 27300 : 13650 : 40950, divide by 1365 (check: 27300/1365 = 20, 13650/1365 = 10, 40950/1365 = 30). Ratio = 20:10:30 = 2:1:3. Much easier to work with.


Memory Tricks & Shortcuts

patternSimplify First, Multiply Never

Before doing any profit-share calculation, reduce the capital ratio to its lowest terms. For ₹63,000 : ₹42,000, mentally strike common zeros: 63 : 42 = 9 : 6 = 3 : 2. Now the share calculation is (3/5) × 9000 = 5400 — two steps. Standard approach of computing 63000/(63000+42000) × 9000 takes four steps and risks arithmetic error. Step count: 4 steps reduced to 2 steps.

patternEffective Investment as a Grid

For time-weighted problems, write a 2-column grid: Partner | C × T. Fill it in, then simplify the column of products. Example — P: 9100×3=27300, Q: 6825×2=13650, R: 8190×5=40950. Now find GCD of all three (try dividing by 1350 or 13650): 27300/13650=2, 13650/13650=1, 40950/13650=3. Ratio = 2:1:3. Total parts = 6. Q's share = (1/6) × 4158 = ₹693. The grid stops you from forgetting to multiply time, which is the #1 mistake in this chapter. Standard method (no grid): ~60s. Grid method: ~35s.

substitutionReverse Ratio for Reverse Problems

When a question gives profit ratio and asks for time, set up the equation: (C₁ × T₁)/(C₂ × T₂) = Profit₁/Profit₂, then isolate the unknown. For the problem where P invests ₹4,000 for (12−m) months and Q invests ₹5,600 for 12 months, and profit ratio is 1:3: write 4000(12−m)/(5600×12) = 1/3. Cross-multiply: 12000(12−m) = 5600×12 = 67200. So 12−m = 5.6, m = 6.4. Writing the ratio equation first prevents confusion about which number goes where. Saves 1-2 minutes of trial-and-error approach.

patternTime-Ratio Shortcut When Capital Ratio Equals Profit Ratio

If the profit ratio matches the capital ratio exactly, the time ratio is 1:1 (all partners invested for the same effective period). In the question with ₹18,000 : ₹24,000 = 3:4 capital ratio and 3:4 profit ratio, you can immediately conclude tA:tB = 1:1 without solving any equation. This eliminates the temptation to guess a non-trivial answer. Recognition time: under 5 seconds versus 45 seconds setting up full equations.

eliminationProfit Share as Fraction — Check Answers First

In a two-partner problem, once you find one partner's share, subtract from total profit to get the other's. If the question gives four options, check whether your computed value appears. If it doesn't appear but total_profit minus your_answer does appear, you likely picked the wrong partner's share — swap it. This catches the "right calculation, wrong partner" mistake in under 10 seconds without recomputing.


Fast-Solving Framework

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

Step 1 — Identify the type. Are all partners investing for the same time, or different durations? If same time: skip to Step 3. If different durations: go to Step 2.

Step 2 — Compute effective investments. Multiply each capital by its time. Write them in a small grid. Then proceed.

Step 3 — Simplify the ratio. Find GCD of all capital (or effective investment) values and divide. Never skip this — it prevents large-number errors later.

Step 4 — Identify what is asked. Is the question asking for (a) a profit share, (b) a capital amount, or (c) a time period? For (a): direct fraction. For (b) or (c): set up the ratio equation and solve.

Step 5 — Active partner? If mentioned, deduct commission first, then split.

Step 6 — Sanity check. All shares must sum to total profit. If they don't, you've made an arithmetic error somewhere. Re-verify Step 3.

Total target time per partnership question: 60-90 seconds.


Solved PYQs

Why this question: The simplest possible partnership — same duration, simplify capital ratio, done. This is the template all other questions build on.

Previous Year Questionपिछले वर्ष का प्रश्न2018
Raman and Sanjay started a business by investing ₹63000 and ₹42000 respectively. If the total profit at the end of year is ₹9000, then what is the share of Raman?
  1. ₹4500
  2. ₹4200
  3. ₹3600
  4. ₹5400
Solutionसमाधान
Ratio of investments = 63000:42000 = 3:2. Raman's share = (3/5) × 9000 = ₹5400.

Solving path: Capitals: ₹63,000 and ₹42,000. Divide both by 21,000 (their GCD). Ratio = 3:2. Total parts = 5. Raman's share = (3/5) × 9,000 = ₹5,400. Cross-check: Sanjay gets (2/5) × 9,000 = ₹3,600. Sum = ₹9,000. Correct.


Why this question: Introduces the time-weighted (effective investment) model with three partners — the most common harder variant.

Previous Year Questionपिछले वर्ष का प्रश्न2016
P invests ₹9100 for 3 months, Q invests ₹6825 for 2 months and R ₹8190 for 5 months in a business. If the total profit amounts to ₹4158, how much profit should Q get?
  1. ₹693
  2. ₹682.50
  3. ₹346.50
  4. ₹1386
Solutionसमाधान
Effective investments: P=9100×3=27300, Q=6825×2=13650, R=8190×5=40950. Total=81900. Q's share = (13650/81900)×4158 = (462/910)×1365 = ₹693.

Solving path: Effective investments — P: 9100 × 3 = 27,300. Q: 6825 × 2 = 13,650. R: 8190 × 5 = 40,950. Divide all by 13,650: P = 2, Q = 1, R = 3. Total parts = 6. Q's share = (1/6) × 4,158 = ₹693. Note: dividing 4,158 by 6 gives 693 exactly. If you left the ratio as 27,300:13,650:40,950, dividing 4,158 proportionally is much harder — this is exactly why simplifying the ratio first is non-negotiable.


Why this question: A reverse problem — you must find a time period, not a profit share. Tests whether you can run the ratio equation backwards.

Previous Year Questionपिछले वर्ष का प्रश्न2025
P and Q started a business by investing a total of ₹9,600. If P invested for m months less than Q, then find the value of m given that P's profit share is ₹2,400. Also, P invested ₹1,600 less than Q, and the total profit earned at the end of the year is ₹9,600.
  1. 6.4 months
  2. 2.6 months
  3. 5.4 months
  4. 4.5 months
Solutionसमाधान
From Q+P=9600 and Q−P=1600, we get Q=5600, P=4000. Profit ratio 2400:7200 = 1:3, so (4000×(12−m))/(5600×12) = 1/3, giving 12−m=5.6, hence m=6.4 months.

Solving path: Two equations: P + Q = 9,600 and Q − P = 1,600. Adding: 2Q = 11,200, so Q = 5,600 and P = 4,000. P's profit share = ₹2,400, so Q's share = 9,600 − 2,400 = ₹7,200. Profit ratio = 2,400 : 7,200 = 1:3. Now write the ratio equation: (4,000 × (12 − m)) / (5,600 × 12) = 1/3. Cross-multiply: 3 × 4,000 × (12 − m) = 5,600 × 12. So 12,000(12 − m) = 67,200. Therefore 12 − m = 5.6, giving m = 6.4 months.


Why this question: A reverse problem asking for time ratio when both capital and profit ratios are given — tests whether you recognise the 1:1 shortcut.

Previous Year Questionपिछले वर्ष का प्रश्न2025
A and B start a business with investments of ₹ 18,000 and ₹ 24,000, respectively. If the profit-sharing ratio is 3 : 4, determine the ratio of the time periods for which A and B invested.
  1. 7 : 9
  2. 2 : 5
  3. 11 : 17
  4. 1 : 1
Solutionसमाधान
Profit ratio = Investment × Time. So (18000 × tA)/(24000 × tB) = 3/4. This gives tA/tB = (3 × 24000)/(4 × 18000) = 72000/72000 = 1. Hence tA : tB = 1 : 1.

Solving path: Capital ratio: 18,000 : 24,000 = 3:4. Profit ratio given: 3:4. Since profit ratio = capital ratio, the time ratio must be 1:1. Formal verification: (18,000 × tA)/(24,000 × tB) = 3/4 → tA/tB = (3 × 24,000)/(4 × 18,000) = 72,000/72,000 = 1. So tA:tB = 1:1. On the actual exam, recognise this pattern in under 10 seconds and move on.


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