Question

3. A and B are partners sharing profits and losses equally. They admit C into partnership by giving
fourth share in future profits. In future, the ratio between A and B would be 2 : 1. Find out the
profit sharing ratio.
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Answer 1

Answer: New profit sharing ratio is 2 : 1 : 1

Step-by-step explanation:

Given that,

C is admitted into partnership for 1/4th share in future profit.

Ratio between A and B would be 2 : 1.

Formula = 1 - share of new partner

= 1 - 1/4

= 3/4 remaining profit.

New ratio = Old ratio × balance of 1

A's new ratio = 2/3 × 3/4

= 6/12

B's New ratio = 1/3 × 3/4

= 3/12

C's new ratio = 1/4 [given] or 3/12

Thus, new profit sharing ratio = 6/12 : 3/12 : 3/12 or 2 : 1 : 1.

New ratio:

When the new partner is admitted in partnership firm, the profit sharing ratio of old partners changes. Thus, it is necessary to calculate new profit sharing ratio including new partner.

Answer 2

Answer:

Given :-

A and B are partners sharing profits and losses equally. They admit C into partnership by giving

fourth share in future profits. In future, the ratio between A and B would be 2 : 1.

To Find :-

Profit sharing ratio

Solution :-

At first

Finding the remaining profit

Remaining Profit = 1 - Share of C

Share of C = One fourth = ¼

Now

Remaining Profit = 1 - 1/4

Remaining Profit = 4 - 1/4

Remaining Profit = 3/4

Ratio of A = Old ratio of A × Remaining Profit

Old Ratio of A = 3 - 1/3 = 2/3

Ratio of A = ⅔ × ¾

Ratio of A = 2/4

Ratio of A = ½

New Ratio of B = Old Ratio of B × Remaining Profit

Old Ratio of B = 3 - 2/3 = 1/3

New Ratio of B = ⅓ × ¾

New Ratio of B = ¼

New Ratio of C = ¼

Now

Ratio = A:B:C

Ratio = ½:¼:¼