Question

A and B are partners in a firm sharing profit in the ratio of 2:1 C joins the firm A surrenders 1/4th of his share and B 1/5 of his share in favor of his share in favour of C.find the new profit sharing ratio

Answer 1

Answer:

Explanation:

A sacrifices = (2/3*1/4)=2/12

B sacrifices =(1/3*1/5)=1/15

A's New share=2/3-2/12=6/12*5/5=30/60

B's New Share =1/3-1/15=4/15*4/4=16/60

C's share =2/12+1/15=14/60

new share =30:16:14

after 15:8:7

Answer 2

Answer:

The new profit sharing ratio of A : B: C = 3 : 6: 2

Explanation:

• The ratio in which a firm divides its earnings and losses.
• The partnership agreement will contain the profit-sharing percentages for the partnership.
• This will show the amount that can be directly attributed to each partner, which is often stated as a share of total earnings.

Given:

Old ratio (A : B) = 2: 1

Sacrificing ratio = Old ratio * Surrender share

A sacrifice = $(\frac{1}{4} )*\frac{1}{7} =3$

B sacrifice =$\frac{1}{5} * \frac{1}3} = 6$

New share = Old share - sacrificing ratio

A's new share$=\frac{1}{4}- \frac{1}{10} = 0.15$

B's new share $=\frac{1}{5} -\frac{1}{10} = 0.1$

C's share is made from the sacrifice ratio of both A and B

C's share= $\frac{1}{10} + \frac{1}{10} = \frac{2}{10}$

Therefore, the new profit sharing ratio of A: B: C = 3 : 6 : 2

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