a ,b and c are partner in a firm sharing profit in the ratio of5:3:2. d is admitted for 2/10 share in profit of the form c will retain his original share. calculate new profit sharing ratio
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Answer:
see below
Explanation:
Old ratio (A, B and C) = 3 : 2 : 1
W is admitted for 1/6th share
A's contribution in favour of W = 3/30 (note 1)
B's contribution in favour of W = 2/30 (note 1)
New ratio = Old ratio - Sacrificing ratio
A's new share = (3/6) - (3/30) = 12/30
B's new share = (2/6) - (2/30) = 8/30
C's share = 1/6 or 5/30 (it remains unchanged)
W's share = 1/6 or 5/30
Therefore, new profit sharing ratio of A, B C and W is 12 : 8 : 5 : 5
Notes:
1. In silent question, A and B will contribute in favour of in old ratio.
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