Question

A and B are partners sharing profits in the ratio of 3: 2. They admit C into
partnership giving him 1/2 share in profits which he acquires from A and B
in the ratio of 3 : 1. Calculate the new profit sharing ratio.​

Answer 1

Explanation:

currently A and B are sharing profits in the ratio of 3:2.

i.e share of A= 3/5 and B =2/5.

and they admited C by giving 1/2 share in profits.

let the profits be 1.

so,C's share in profits is 1/2.

1 minus C's share = 1/2.

this remaining share of 1/2 in profits is the combined profit ratio of A and B.

which will be distributed in accordance with the old profit sharing ratio.

we know,

new profit sharing ratio = old ratio × remaining share .

so, A's new sharing ratio = 3/5×1/2

=》3/10.

B's new sharing ratio = 2/5×1/2

=》2/10.

the diniminators of all partners profit sharing ratio should be equal. A's and B's denominators in profit sharing ratio are equal so,now make the remaining partner (C) ratio also equal.

C's share =1/2

to make its denominator 10 .multiply the ratio with 5/5.

C's share = 1/2 × 5/5 =5/10.

therefore the new profit sharing ratio of A,B&C

will be 3:2:5 (respectively).

Answer 2

Answer:

A and B are partners sharing profits in the ratio of 3/2 2. They admit C into partnership giving him 1/2 share in profits which he acquires from A and B in the ratio of 3:1. Calculate the new profit sharing ratio.