Question

A and B are partners sharing profits and losses in the ratio of 5 : 3. They admit C into the partnership giving him 1⁄4 share in profits which he acquires from A and B in the ratio of 3:1. Calculate the new profit sharing ratio.

Answer 1

Answer:

Old ratio (A and B) = 5 : 3

C is admitted for 3/10th share of profit

A's sacrifice in favour of C = 1/5

B's sacrifice in favour of C = 1/10

New ratio = Old ratio - Sacrifcing ratio

A's new ratio = (5/8) - (1/5) = 17/40

B's new ratio = (3/8) - (1/10) = 11/40

C's share = 3/10 or 12/40

Therefore, new profit sharing ratio of A : B : C is 17 : 11 : 12

Explanation:

hope this helps you!!