Question

10. A, B and C are partners in the ratio of 5:3:2 respectively. D is admitted in the firm as partner
with 1/5 th share. Calculate the new profit sharing ratio and sacrificing ratio.

(Ans. 10:6:4:5 and 5:3:2​

Answer 1

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Old ratio (A and B) = 3 : 2

C is admitted for 1/5 th share

A's sacrifice in favour of C = (1/5) * (1/2) = (1/10)

B's sacrifice in favour of C = (1/5) * (1/2) = (1/10)

New ratio = Old ratio - Sacrificing ratio

A's new ratio = (3/5) - (1/10) = 5/10 or 1/5

B's new share = (2/5) - (1/10) = 3/10

C's share = A's sacrifice + B's sacrifice

= (1/10) + (1/10)

= 2/10

Therefore, new profit sharing ratio of A, B and C is 5 : 3 : 2