This is an independent topic guide, not the official syllabus. Compare it with the current paper outline and rules published by the examination authority.
01 / UNDERSTANDING
Learning objectives
Study capital-time ratios, changing contributions and proportional profit allocation. Learn to state the agreement assumptions before using the arithmetic, particularly when a case includes additional allowances.
02 / UNDERSTANDING
The concept in context
Basic partnership problems often state that profit is shared in proportion to capital employed for time. Multiply each capital amount by its investment duration, keeping time units consistent, then form the ratio of these capital-time weights. A larger initial investment need not receive a larger share if it remains invested for a shorter period.
03 / UNDERSTANDING
A worked learning case
Original educational case. In an original practice agreement, A invests ₹20,000 for twelve months and B ₹30,000 for eight months. Their capital-time weights are both ₹2,40,000-months, so a stated profit of ₹18,000 is split equally at ₹9,000 each. B’s larger capital is offset by the shorter investment period under the example’s explicit rule.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
Original practice: A invests ₹10,000 for 12 months and B ₹20,000 for 6 months. Under capital-time sharing, what is the ratio?
Show the answer and reasoning
1:1.
A’s weight is 10,000 × 12 = 1,20,000, and B’s is 20,000 × 6 = 1,20,000 in the same capital-month units. Equal weights produce equal profit shares. Comparing capital alone would give 1:2 and ignore the duration difference that the stated sharing rule requires.
Two traps to watch for.
- Comparing invested capital while ignoring its duration.
- Adding an unstated salary or interest allowance to the profit split.
YOUR TOPIC-SPECIFIC LEARNING MAP
Your revision map
Draw a capital timeline.
Calculate each capital-time segment.
Apply only the stated distribution rule.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- www.ibps.in https://www.ibps.in/
- www.ibps.in https://www.ibps.in/index.php/faq/
For IBPS & RRB preparation, check the current official notice before relying on changing dates, rules or examination requirements.
