Question

A and B are partnes sharing profits and losses in the proportion of 3:1 . They agree to admit C into partnership who is to get 1/8 th of share . He acquired his share as to 1/32 from A and 3/32 from B. Calculate the new profit sharing ratio ​

Answer 1

Explanation:

New profit and loss sharing ratio of A, B, C is

A:B:C = 23 : 7 : 4

Answer 2

Question :-

To find the new profit sharing ratio.

Solution :-

$\sf\bull \: old \: ratio \: of \: partners = 3 : 1$

• admitted C into partnership
• share of C = 1/8
• from A = 1/32
• From B = 3/32

$\bull\sf \: share \: of \: a = \frac{3}{4} - \frac{1}{32} = \frac{3 \times 8}{4 \times 8} - \frac{1}{32} = \frac{24 - 1}{32} = \frac{23}{32}$

$\bull\sf \: share \: of \: b = \frac{1}{4} - \frac{3}{32} = \frac{1 \times 8}{4 \times 8} - \frac{3}{32} = \frac{5}{32}$

$\bull\sf \: share \: of \: c = \frac{1}{8} = \frac{4}{32}$

so,

$⇝\sf\frac{23}{32}: \frac{5}{32} : \frac{4}{32}$

$⇝\sf \: 23 : 5 : 4$

$\bf \: new \: profit \: sharing \: ratio = 23 : 5 : 4$