A,B and C are partner sharing profits in the ratio of 5:3:2 as per the new agreement ,A agree to sacrifice 1/2 of his in the favor of b and c in the ratio of 3:2.compute new profit sharing ratio and sacrifice and gain of the partner?
Answers
Answer:
Case 1.
Calculation of new profit sharing ratio:
A's new ratio= old ratio-sacrifice
= 5/10-1/5
= 3/10
B's ratio= 4/10
C's new ratio= 1/10+1/5
= 3/10
New ratio= 3:4:3
Calculation of sacrificing ratio:
A's sacrifice= 1/5
C's gain= 1/5
Case 2.
Calculation of new profit sharing ratio:
A's new ratio= 5/10-1/5
= 3/10
B's new ratio= 4/10-1/5
= 2/10
C's new ratio= 1/10+1/5+1/5
= 5/10
New ratio= 3:2:5
Calculation of sacrificing ratio:
A's sacrifice= 1/5
B's sacrifice= 1/5
Ratio= 1:1
C's gain= 1/5+1/5
= 2/5
Case 3.
New profit sharing ratio= 1:1:1
Calculation of sacrificing ratio:
A's sacrifice= 5/10-1/3
= 5/30
B's sacrifice= 4/10-1/3
= 2/30
Sacrificing ratio= 5:2
C's gain= 7/30
Case 4.
Calculation of sacrificing ratio:
A's sacrifice= 5/10 * 1/10
= 5/100
B's sacrifice= 4/10 * 1/2
= 4/20
Sacrificing ratio= 5:20 = 1:4
Calculation of new profit sharing ratio:
A's new share= 5/10-5/100
= 9/20
B's new share= 4/10-4/20
= 4/20
C's new share= 5/100+4/20
= 25/100
New ratio= 45:20:25
= 9:4:5