Question

A and B partners in a firm sharing profits and losses in the ratio of 2:1 they admit Mr c into partnership for 1/4 share. calculate New profit sharing ratio​

Answer 1

Answer:

2:1:1

Explanation:

A'S OLD RATIO IS 2/3

B'S OLD RATIO IS 1/3

C'S AGREED SHARE IS 1/4

ASSUMING TOTAL SHARE IS 1

REMAINING SHARE = 1-1/4 = 3/4

A'S NEW RATIO = 2/3 × 3/4 = 6/12

B'S NEW RATIO = 1/3 × 3/4 = 3/12

C'S NEW RATIO = 1/4 × 3/3 = 3/12

NEW RATIO OF A,B&C IS 6/12:3/12:3/12

i.e. 6:3:3

⇒2:1:1

Answer 2

Answer:

New Profit Sharing Ratio =

A : B : C = 2 : 1 : 1

Explanation:

Solution :

★ Old Ratio :

A : B = 2 : 1

• A's Share = 2/3
• B's Share = 1/3

They admit Mr. C into partnership for 1/4 share.

• C's Share = 1/4

Let,

Total Profit of all Partners = 1

• C's Share = 1/4

Remaining Share =

1 - 1/4 = 3/4

★ New Profit Sharing Ratio :

• A's New Share =

⇒ 3/4 × 2/3 = 6/12

• B's New Share =

⇒ 3/4 × 1/3 = 3/12

• C's Share =

• 1/4 × 3/3 = 3/12

New Profit Sharing Ratio =

• A : B : C
• 6/12 : 3/12 : 3/12

⇒ 6 : 3 : 3 = 2 : 1 : 1

Therefore, New Profit Sharing Ratio =

A : B : C = 2 : 1 : 1