Question

A and B are partners sharing profit ratio 3:2 A surrenders 1/4 of his share and B surrenders 1/2 part of his share in favor of C what is new profit sharing ratio

Answer 1

Given:

• A and B are partners in a firm, sharing profits and losses in the ratio 3:2.
• A surrenders 1/4 of his share and B surrenders 1/2 of his share for C, a newly admitted partner.

To find: The new profit-sharing ratio.

Answer:

• A's old share = 3/5
• B's old share = 2/5

From A, C gets:

• 3/5 × 1/4 = 3/20

From B, C gets:

• 2/5 × 1/2 = 2/10

Calculation of the new profit-sharing ratio:

New share = Old share - Sacrifice made

For A:

• New share = 3/5 - 3/20 = (12 - 3)/20 = 9/20

For B:

• New share = 2/5 - 2/10 = (4 - 2)/10 = 2/10, or 4/20

For C:

• New share = 3/20 + 2/10 = (3 + 4)/20 = 7/20

Therefore, the new profit-sharing ratio is 9:4:7.