A and B were partners in a firm sharing profits in 3:2 ratio. They admitted C for `3//7` share which he took `2//7` from A and `1//7` from B. Calculate new profit sharing ratio?
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Explanation:
we have to minus 3/7 from total share of A then 2/7 from B's share we get our NPSR
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Explanation:
Old Ratio :
A : B = 3 : 2
They admitted C for 3/7
Which he took 2/7 from A and 1/7 from B
A Sacrifice = 2/7
B Sacrifice = 1/7
New profit sharing ratio :
• New Share of A =
= 3/5 - 2/7 = (21-10)/35
= 11/35
• New Share of B =
= 2/5 - 1/7 = (14-5)/35
= 9/35
• C's Share =
= 3/7 = 15/35
New profit sharing ratio :
A : B : C = 11/35 : 9/35 : 15/35
= 11:9:15
Hence, New profit sharing ratio = A,B and C = 11 : 9 : 15
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