26. A and B are partners sharing profits and losses in the ratio of 5:3. They admit C into partnership giving him 1/8 share in profits. C acquires it in equal proportion from the old partners. Find out the new profit sharing ratio.
Answers
Answer:
new profit sharing ratio =9:5:2
Explanation:
A:B=5:3
admit C-1/8share
acquires in 1:1
share sacrificed=new share *proportion of share sacrificed
A=1/8*1/2=1/16
B=1/8*1/2=1/16
s.s=1:1
new share of old partner=old share-share sacrificed
A=5/8-1/16=9/16
B=3/8-1/16=5/16.
C=1/8*2/2=2/16
therefore A:B:C=9:5:2
The new profit sharing ratio is 9 : 5 : 2
Explanation:
Solution :
★ Old Ratio :
A : B = 5 : 3
- A's share = 5/8
- B's share = 3/8
They admit C into partnership giving him 1/8 share in profits.
- C's share = 1/8
C acquires it in equal proportion from the old partners.
A's share acquired by C =
⇒ 1/8 × 1/2 = 1/16
B's share acquired by C =
⇒ 1/8 × 1/2 = 1/16
C's share =
⇒ 1/16 + 1/16 = 2/16
★ New profit sharing ratio :
• A's new share =
⇒ 5/8 - 1/16 = (10 - 1)/16
⇒ 9/16
• B's new share =
⇒ 3/8 - 1/16 = (6 - 1)/16
⇒ 5/16
• C's share =
⇒ 1/8 × 2/2 = 2/16
New profit sharing ratio =
- A : B : C
- 9/16 : 5/16 : 2/16
⇒ 9 : 5 : 2
Therefore, the new profit sharing ratio is 9 : 5 : 2