Question

A and B are partners sharing profits and losses in the proportion of 7 : 5 . They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B. Calculate new profit-sharing ratio.

Answer 1

New profit-sharing ratio is calculated below.

Explanation:

Old ratio between A and B is given as 7:5.

C enters for 1/6 share of profit

To calculate new ratio, need to deduct 1/24 from A and 1/8 from B.  

Sacrifice by A in favour of C$=\frac{1}{24}$

Sacrifice by B in favour of C$=\frac{1}{8}$

Profit share C would get after his admission = 1/6

Calculation of New Ratio

New Ratio = Old Ratio - Sacrificing Ratio

A’s share will become

$=\frac{7}{12}-\frac{1}{24}=\frac{14}{24}-\frac{1}{24}=\frac{13}{24}$

B’s share will become

$=\frac{5}{12}-\frac{1}{8}=\frac{10}{24}-\frac{3}{24}=\frac{7}{24}$

Thus, New profit-sharing ratio becomes

$\begin{aligned}&=\frac{13}{24}: \frac{7}{24}: \frac{1}{6}\\\\&\begin{array}{l}=\frac{13: 7: 4}{24} \\\\=13: 7: 4\end{array}\end{aligned}$

= 13/24: 7/24: 1/6

This can also be written as: 13:7:4

Thus, the new profit sharing ratio will be 13 : 7 : 4

Answer 2

Answer:

.....................is the ans right?