Question

A and B C are partners sharing profit and losses in the ratio 6:3:3 they agreed to take D into partnership for 1/8th share of profit. Find the new profit sharing ratio

Answer 1

Let the total profit be = 1

D's share = 1/8th of profits = 1/8

Remaining share to be distributed to A,B, and C in the old ratio = 7/8

A's share = 7/8 × 6/12 = 42/96

B's share = 7/8 × 3/12 = 21/96

C's share = 7/8 × 3/12 = 21/96

D's share = 1/8 × 12/12 = 12/96

A:B:C:D = 42:21:21:12

New Profit Sharing Ratio = 14:7:7:4