Question

2. A, B, and C are partners sharing profits in proportion of 1/2 1/3 1/6 & If A retires, what will be the new profit sharing ratio? 3. 12% p.a. interest on Bank Loan 80,000 for 06 months Calculate interest.​

Answer 1

2:1 , 4800

Explanation:

• The profit sharing ratio of A,B and C is   $\frac{1}{2}:\frac{1}{3}:\frac{1}{6}$

• First make all the denominator same. It can be done by finding HCF of all three denominators.

                       HCF of 2,3 & 6 is 6

• Now make all fractions with same denominator:                                                

                                     $\frac{1}{2} = \frac{1}{2} * \frac{3}{3} = \frac{3}{6}$

                                     $\frac{1}{3} = \frac{1}{3} * \frac{2}{2} = \frac{2}{6}$

                                     $\frac{1}{6} = \frac{1}{2} * \frac{1}{1} = \frac{1}{6}$

• So, now profit sharing ratio of A,B and C becomes $\frac{3}{6}:\frac{2}{6}:\frac{1}{6}$   or  3:2:1
• So, if A retires then new profit sharing between B and C is 2:1

• For Finding Simple Interest we will use following formulae

                                     Simple Interest = P*R*T

                               where, P = Principal amount

                                            R = Rate of interest

                                            T = time(In years)

• Given, P = 80000 , R = 12% p.a. , T = 0.5 years
• Simple Interest = 80000 * 12% * 0.5

                                  = 4800