Question

A and B are partners in a firm with ratio of 3:2. They enter C as a partner for 1/4th share. calculate the new profit sharing ratio in the following conditions. (1) if C gets whole of his share from B. (2) if c gets his share from A and B in equal ratio. (3) if C gets his share from A and B in the ratio 4:5. (4) if C gets his share from A and B in their mutual ratio.​

Answer 1

Answer:

2) Correct option is

C

5:3:2

Old ratio (A and B) = 3 : 2

C is admitted for 1/5 th share

A's sacrifice in favour of C = (1/5) * (1/2) = (1/10)

B's sacrifice in favour of C = (1/5) * (1/2) = (1/10)

New ratio = Old ratio - Sacrificing ratio

A's new ratio = (3/5) - (1/10) = 5/10 or 1/5

B's new share = (2/5) - (1/10) = 3/10

C's share = A's sacrifice + B's sacrifice

= (1/10) + (1/10)

= 2/10

Therefore, new profit sharing ratio of A, B and C is 5 : 3 : 2

3) Correct option is

D

11:4:5

Old share (A and B) = 4 : 1

C is admitted for 1/4 Share

A sacrifices in favour of C = 1/4

New ratio = Old ratio - Sacrificing ratio

A's new ratio = (4/5) - (1/4) = 11/20

B's new share = (1/5) - 0 = 1/5 or 4/20

C's share = 1/4 or 5/20

Therefore, new profit sharing ratio of A, B and C = 11 : 4 : 5

4) Correct option is

C

12:8:5:5

Old ratio (A, B and C) = 3 : 2 : 1

W is admitted for 1/6th share

A's contribution in favour of W = 3/30 (note 1)

B's contribution in favour of W = 2/30 (note 1)

New ratio = Old ratio - Sacrificing ratio

A's new share = (3/6) - (3/30) = 12/30

B's new share = (2/6) - (2/30) = 8/30

C's share = 1/6 or 5/30 (it remains unchanged)

W's share = 1/6 or 5/30

Therefore, new profit sharing ratio of A, B C and W is 12 : 8 : 5 : 5

Notes:

1. In silent question, A and B will contribute in favour of in old ratio.

1) A's old share= 2/5

B's old share= 2/5

C's old share= 1/5

D is admitted for 1/6th share. C will retain his original share.

Hence, remaining share= 1- [1/6] - [1/5]

= 19/30

This remaining share will be shared by A and B in their old ratio, i.e, 2:2

A's new share= 2/4 * 19/30

= 38/120

B's new share= 2/4 * 19/30

= 38/120

New Profit sharing ratio= 38:38:24:20

= 19:19:12:10

Sacrificing ratio= old ratio- new ratio

A's sacrifice= 2/5- 19/60

= 5/60

B's sacrifice= 2/5- 19/60

= 5/60

Sacrificing ratio= 5:5= 1:1

[Note: since nothing is mentioned, we assume that only A and B have sacrificed since C retains his old share]