Uploaded July 2026 | Updated September 2026, 2 weeks ago
What is the fairest way to split profit when two business partners invest different amounts? Splitting it equally might seem simple, but it actually shortchanges the partner who put in more.
In this video, you will learn the concept of a partnership, where profit is shared in the same ratio as the investments made by each partner. Follow along as we work through two full examples: first with Jhelum and Atharva who invest rupees 2100 and 2800 respectively and must divide a profit of rupees 3500, and then with Chinmaya and Sam whose investments are in the ratio 3:2 with a total capital of rupees 1,30,000 and a profit of rupees 36,000. You will see how to find the investment ratio, use a profit factor x to set up the equation, and calculate each person's exact share step by step.
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khanacademy.org/math/mr-class-7/x5270c9989b1e59e6:direct-proportion-and-inverse-proportion?lang=en
Timestamps:
0:00 - Business Partnership Problem Setup
0:40 - Finding the Investment Ratio
1:20 - Distributing Profit in the Same Ratio
2:35 - Why the Profit Ratio Must Equal the Investment Ratio
3:15 - Step-by-Step Method to Solve Any Partnership Problem
3:55 - Example 2: Two Partners with a Known Ratio and Total Investment
4:35 - Finding Each Partner's Individual Investment
5:15 - Finding Each Partner's Profit Share
5:50 - Key Takeaways and Challenge Problem
Khan Academy India is a nonprofit organization with the mission of providing a free world-class education for anyone anywhere. We have videos and exercises that have been translated into multiple Indian languages and 15 million people around the globe learn on Khan Academy every month.
Support Us: india.khanacademy.org/donate
What is the fairest way to split profit when two business partners invest different amounts? Splitting it equally might seem simple, but it actually shortchanges the partner who put in more.
In this video, you will learn the concept of a partnership, where profit is shared in the same ratio as the investments made by each partner. Follow along as we work through two full examples: first with Jhelum and Atharva who invest rupees 2100 and 2800 respectively and must divide a profit of rupees 3500, and then with Chinmaya and Sam whose investments are in the ratio 3:2 with a total capital of rupees 1,30,000 and a profit of rupees 36,000. You will see how to find the investment ratio, use a profit factor x to set up the equation, and calculate each person's exact share step by step.
Courses on Khan Academy are always 100% free. Start practicing and saving your progress now!
khanacademy.org/math/mr-class-7/x5270c9989b1e59e6:direct-proportion-and-inverse-proportion?lang=en
Timestamps:
0:00 - Business Partnership Problem Setup
0:40 - Finding the Investment Ratio
1:20 - Distributing Profit in the Same Ratio
2:35 - Why the Profit Ratio Must Equal the Investment Ratio
3:15 - Step-by-Step Method to Solve Any Partnership Problem
3:55 - Example 2: Two Partners with a Known Ratio and Total Investment
4:35 - Finding Each Partner's Individual Investment
5:15 - Finding Each Partner's Profit Share
5:50 - Key Takeaways and Challenge Problem
Khan Academy India is a nonprofit organization with the mission of providing a free world-class education for anyone anywhere. We have videos and exercises that have been translated into multiple Indian languages and 15 million people around the globe learn on Khan Academy every month.
Support Us: india.khanacademy.org/donate
