Question

A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D.

Answer 1

New profit-sharing ratio is calculated below.

Explanation:

Old ratio between A, B and C is given as 3:2:1.

A's Original Share $=\frac{3}{6}$

D is to acquire 1/6 th share each from B and C

D's share $=\frac{1}{8}$

Profit share D would get after his admission = 1/8th of the profit

To calculate new ratio, need to deduct 1/16th from C’s and B’s share.  

Calculation of new share:

B’s new share

$=\frac{2}{6}-\frac{1}{16} = \frac{13}{48}$

C’s new share

$=\frac{1}{6}-\frac{1}{16} =\frac{5}{48}$

Thus, New profit-sharing ratio of A, B, C and D becomes

$=\frac{3}{6}:\frac{13}{48}:\frac{5}{48}:\frac{1}{8}$

$=\frac{24:13:5:6}{48}$

$=24:13:5:6$

This can also be written as: 24:13: 5:6

Thus, the New profit-sharing ratio of A, B, C and D is $24:13:5:6$