A and B are partners sharing profits in the ratio of 5:3 . they admit C on 1/4 shares which he acquires 1/6 from A and 1/12 from B. calculate the new profit sharing ratio of the partners
Answers
Answered by
52
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 is 17 : 11 : 12..
Similar questions