16. A, B, C, D are in partnership sharing profits and losses in the ratio of 9: 6:5:5. E joins the partnership for 20% share. A, B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. The new profit sharing ratio will be: (A) 3:4:2:1:5 (B) 9: 6:5:5:5 (C) 6:8:4:2:5 (D) 8:6:4:2:5
Answers
Answer:
(C) 6:8:4:2:5
Explanation:
A, B, C, D in future share the profits as 3:4:2:1.
Total profits for ABCD will be 10x,
which is 4/5th of Total profits of ABCDE since E will get 1/5th of profits.
so Total profits = 5/4(10x) = 12.5x
E's share = 1/5th of 12.5x = 2.5x
so New Ratio = 3 : 4 : 2 : 1 : 2.5 = 6:8:4:2:5
Explanation:
Solution :
★ Old Ratio :
A : B : C : D = 9 : 6 : 5 : 5
E joins the partnership for 20% share.
- E's share = 20% (20/100) = 1/5
Let,
Total profit of all partners = 1
E's share = (20/100) = 1/5
Remaining share =
1 - 1/5 = 4/5
A, B, C and D would in future share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10.
★ New pofit sharing ratio :
• A's new share =
4/5 × 3/10 = 12/50
• B's new share =
4/5 × 4/10 = 16/50
• C's new share =
4/5 × 2/10 = 8/50
• D's new share =
4/5 × 1/10 = 4/50
• E's share =
1/5 × 10/10 = 10/50
New pofit sharing ratio =
- A : B : C : D : E
- 12/50 : 16/50 : 8/50 : 4/50 : 10/50
12 : 16 : 8 : 4 : 10 = 6 : 8 : 4 : 2 : 5
Therefore, Option (C) 6:8:4:2:5
The new profit sharing ratio will be 6 : 8 : 4 : 2 : 5.