A and B are partners sharing profit and losses in the ratio 3:2. They decided to admit C as a partner for 1/4th share. New ratio and sacrificing ratio will be?
Answers
Question given:
- A and B are partners sharing profit and losses in the ratio 3:2. They decided to admit C as a partner for 1/4th share. New ratio and sacrificing ratio will be
Information provided with us:
- A and B are partners sharing profit and losses in the ratio 3:2
- They decided to admit C as a partner for 1/4th share
What we have to calculate:
- New ratio and Sacrificing ratio
Required answer:
________________
Using Formula,
Sacrificing ratio = Old share - New share
Finding out new shares of A, B, and C:
A:-
➺ Share of A = 3 / 3+2
➺ Share of A = 3 / 5
B:-
➺ Share of B = 2 / 3+2
➺ Share of B = 2 / 5
C:-
➺ Share of C = 1 / 4
Sacrifice of A and B:
A:-
➺ Sacrifice of A = 1/4 × 1/2
➺ Sacrifice of A = 1×1 / 4×2
➺ Sacrifice of A = 1/8
Finding out new profit sharing ratio of A,B,andC
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Explanation:
Old ratio =
A:B = 3:2
A's Share= 3/5
B's Share= 2/5
They decided to admit C as a partner for 1/4th share.
C's share = 1/4
suppose,
Total profit = 1
1 - 1/4 = 3/4
Remaining share = 3/4
New profit sharing ratio =
• A's new share =
= 3/5 × 3/4
= 9/20
• B's new share =
= 2/5 × 3/4
= 6/20
• C's share =
= 1/4 × 5/5
= 5/20
New profit sharing ratio =
A:B:C = 9/20 : 6/20 : 5/20
= 9:6:5
New profit sharing ratio =
A:B:C = 9:6:5
Sacrificing ratio = old ratio - new ratio
A's Sacrifice =
= 3/5 - 9/20
= 3/20
B's Sacrifice =
= 2/5 - 6/20
= 2/20
Sacrificing ratio =
A: B = 3/20 : 2/20
= 3 : 2
Sacrificing ratio =
A: B = 3 : 2
Hence, New profit sharing ratio of A,B and C = 9:6:5 and Sacrificing ratio will be A: B = 3 : 2