Question

A and B are partners sharing profits in the ratio of 5:4. They admited C for 1/9th share , which he acquires from A. Find new profit sharing ratio and Sacrificing ratio of A and B.​

Answer 1

Given data:

• A and B are partners in a firm sharing profits and losses in the ratio 5:4.
• C is admitted into the firm for 1/9th of the shares, which he acquires from A.

To find: The new profit-sharing ratio and sacrificing ratio of A and B.

Answer:

A's old share = 5/9

B's old share = 4/9

C's share = 1/9 of A's share

C gets 1/9th of his share from A, i.e., 1/9 will be deducted from A's share.

Calculation of the new profit-sharing ratio:

New ratio = Old ratio - Ratio surrendered

For A:

• New ratio = 5/9 - 1/9 = 4/9

For B:

• New ratio = 4/9

For C:

• New ratio = 1/9

Calculation of the sacrificing ratio:

Sacrificing ratio = Old ratio - New ratio

For A:

• Sacrificing ratio = 5/9 - 4/9 = 1/9

For B:

• Sacrificing ratio = 4/9 - 4/9 = 0 [No sacrifice]

Therefore, the new profit-sharing ratio is 4:4:1 and the sacrificing ratio is 1.