A and B are partner sharing profit in the ratio 5:3 .C is admitted to the partnership for 1/4th share of future profit. calculate the new profit sharing ratio.
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Answer:
15:9:8 is answer
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Answered by
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Given:
Share of A and B=5:3
C's share=1/4th
To find:
The new profit sharing ratio of A, B, and C
Solution:
The new ratio between A, B, C is 15:9:8.
Since the new partner, C, is admitted for 1/4th of the total share, the old partners, A and B, will get the remaining 3/4th share.
We will distribute this remaining share between B and A in their old ratio.
So, the new share of A=5/8 of 3/4
=5/8×3/4
=15/32
Similarly, the new share of B=3/8 of 3/4
=3/8×3/4
=9/32
The new share of C=1/4=8/32
Now, the new shares of A, B, and C are in the following ratio-
A: B: C=15/32: 9/32: 8/32
=15:9:8
Therefore, the new ratio is 15:9:8.
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