Question

A:B= 3:2
C is admitted for 1/5th of A's share and 1/5th share from B.
Calculate New Profit Sharing Ratio and sacrifice ratio of A and B​

Answer 1

Given:

• A and B are partners in a firm, sharing profits and losses in the ratio 3:2.
• C is admitted into the firm for 1/5th of A's share and acquires 1/5th from B.

To find: The new profit-sharing ratio and the sacrificing ratio.

Answer:

• A's old share = 3/5
• B's old share = 2/5

• C's share = 1/5th of A + 1/5th from B

From A, C gets:

• 1/5 × 3/5 = 3/25

From B, C gets:

• 1/5

Calculation of the new profit-sharing ratio:

New ratio = Old ratio - Sacrifice made

For A:

• New ratio = 3/5 - 3/25 = (15 - 3)/25 = 12/25

For B:

• New ratio = 2/5 - 1/5 = (10 - 5)/25 = 5/25

For C:

• New ratio = 3/25 + 1/5 = (3 + 5)/25 = 8/25

Therefore, the new profit-sharing ratio is 12:5:8.

Calculation of the sacrificing ratio:

Sacrificing ratio = Old ratio - New ratio

For A:

• Sacrificing ratio = 3/5 - 12/25 = (15 - 12)/25 = 3/25

For B:

• Sacrificing ratio = 2/5 - 5/25 = (10 - 5)/25 = 5/25

Therefore, the sacrificing ratio is 3:5.