Question

15. (March-2017) A and B are partners Sharing profits and losses in the proportion of 6:4
respectively. They agree to admit C into partnership for 6/20h share of profit which he
acquires 4/20 from A and 2/20 from B. Calculate the new profit sharing ratio.
Ans: 4:313​

Answer 1

Given data:

• A and B are partners in a firm, sharing profit and losses in the ratio 6:4.
• C is admitted into the firm for 6/20th of the profits, which he acquires 4/20 from A and 2/20 from B.

To find: The new profit-sharing ratio.

Answer:

• A's old share = 6/10
• B's old share = 4/10
• C's share = 6/20

From A, C gets:

• 6/10 × 4/20 = 24/200

From B, C gets:

• 4/10 × 2/20 = 8/200

Calculation of the new profit-sharing ratio:

New ratio = Old ratio - Ratio Surrendered

For A:

• New ratio = 6/10 - 24/200 = (120 - 24)/200 = 96/200

For B:

• New ratio = 4/10 - 8/200 = (80 - 8)/200 = 72/200

For C:

• New ratio = Sacrifice from A + Sacrifice from B = 24/200 + 8/200 = 32/200

Therefore, the new profit-sharing ratio is 96:72:32 or 12:9:4.

Answer 2

Question:-

A and B are partners Sharing profits and losses in the proportion of 6:4 respectively. They agree to admit C into partnership for 6/20th share of profit which he

acquires 4/20 from A and 2/20 from B. Calculate the new profit sharing ratio.

Given:-

• A's share = 6/10.
• B's share = 4/10.
• C's share = 6/20.

To Find:-

• New profit - sharing ratio.

Solution:-

Partners A&B,admitted Partner C.

A = 6/10 × 4/20 = 24/200

B = 4/10 × 2/20 = 8/200

Now,New ratio

A = 6/10 – 24/200 = 69/200

B = 4/10 – 8/200 = 72/200

C = 24/200 + 8/200 = 3/200

Answer:-

∴ The New - profit sharing ratio is 12:9:4.