Six month cash flow
As you can see in six month we have make £126,290 but because of we are partners we have to share the money so this is the way I will share the money: I look how much money I put for business and my partner as well.
In banning of the business we said that we need £50,000 so I put £20,000 and my partner puts £10,000 and the rest we got from loan so to found the share I have to look at ratio. To work out the ratio of my partner and me, I have to ...
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As you can see in six month we have make £126,290 but because of we are partners we have to share the money so this is the way I will share the money: I look how much money I put for business and my partner as well.
In banning of the business we said that we need £50,000 so I put £20,000 and my partner puts £10,000 and the rest we got from loan so to found the share I have to look at ratio. To work out the ratio of my partner and me, I have to puts the money I puts for business and the money that my partner puts in the business and keep dividing so you get a small number which you can not divided so this how I work the ratio:
So as I done the table you can see the money I put and the money that my partner puts next together then divided by 1,000 then I got 20:10 then divided by 10 as my result show is 2:1 so this is the ratio of me and my partner my ratio is 2 and my partner ratio is 1. to see how much I get in six month and how mach my partner get I have to add the ratio for example 2+1=3 and overall is 3 then I have to the closing balance in February divided by 3 as show :
£126,290/3= £42,096.60
Then I have to times by the ratio as show:
My ratio 2 x £42,096.60 = £84,193.20
My partner ratio 1 x £42,096.60 = £42,096.60
When you add it you get = £126,289.80 and the difference is 0.20p and this because of the dismal point when I divided £126,290/3 so I will give 0.10p to my partners and 0.10p as its show:
£84,193.20 + 0.10p= £84,193.30
£42,096.60 + 0.10=£42,096.70
So in six month I get £84,193.30 and my partner get £42,096.70 but the important thing is the ratio which is 2:1.