A and B are partners sharing profits and losses equally. They admitinto partnership by giving him a fourth share in future profits which he
acquires from A and B in ratio 3 : 2. Find out the new profit sharing
ratio.
Answers
Answer: New profit sharing ratio is 9 : 6 : 5.
Step-by-step explanation:
Given:
C is admitted into partnership for 1/4th share in future profit.
Ratio between A and B would be 3 : 2.
Formula = 1 - share of new partner
= 1 - 1/4
= 3/4 remaining profit.
New ratio = Old ratio × balance of 1
A's new ratio = 3/5 × 3/4
= 9/20
B's New ratio = 2/5 × 3/4
= 6/20
C's new ratio = 1/4 [given] or 5/20
Thus, new profit sharing ratio = 9/20 : 6/20 : 5/20 or 9 : 6 : 5.
Answer:
9 : 6 : 5
Explanation:
Given -
A and B are partners of sharing profits of losses in a share
They admit into partnership by giving a new partner for future profits, his share will be 1/4 of new shares, Where ratio of A and B will be 3 : 2.
To find -
The new ratio
Solution -
Let the old share as 1, and new partner as C
so
A's share = 3/5 of 1
B's share = 2/5 of 1
In future profits,
C's share = 1/4 of 1
= 1/4
Remaining share = 1 - 1/4
= 4-1/4
= 3/4
A's new share = 3/5 of remaining from 1
= 3/5 × 3/4
= 9/20
B's new share = 2/5 of remaining 1
= 2/5 × 3/4
= 6/20
So ratio of A, B and C -
9/20 : 6/20 : 1/4
= 9/20 : 6/20 : 5/20
= 9 : 6 : 5
Hence the new ratio will be 9 : 6 : 5.
hope it helps.