A, B, C and D are in a partnership sharing profits and losses in the ratio of 1:2:3:4. E joins for 25% share. The new profit-sharing ratio among A, B, C, D will be 4:3:2:1. What is the new profit-sharing ratio among A, B, C, D, E?
Answers
Explanation:
A's old share= 36/100
B's old share= 24/100
C's old share= 20/100
D's old share= 20/100
E is admitted for 20/100th share
Remaining share= 1-[20/100]
= 80/100
New ratio among partners should be 3:4:2:1
A's new share= 3/10 * 80/100
= 24/100
B's new share= 4/10 * 80/100
= 32/100
C's new share= 2/10 * 80/100
= 16/100
D's new share= 1/10 * 80/100
= 8/100
New profit sharing ratio= 24:32:16:8:20
= 6:8:4:2:5
Explanation:
Solution :
★ Old Ratio :
A : B : C : D = 1 : 2 : 3 : 4
E joins for 25% share
E = 25% share
Let,
Total profit of all partners = 1
Remaining share =
1 - 25/100 (1/4) =
75/100 (3/4)
★ New profit sharing ratio =
A's new share =
3/4 × 4/10 = 12/40
B's new share =
3/4 × 3/10 = 9/40
C's new share =
3/4 × 2/10 = 6/40
D's new share =
3/4 × 1/10 = 3/40
E's share =
1/4 × 10/10 = 10/40
New profit sharing ratio =
- A : B : C : D : E =
- 12/40 : 9/40 : 6/40 : 3/40 : 10/40
12 : 9 : 6 : 3 : 10
Therefore, The new profit-sharing ratio among A, B, C, D and E = 12 : 9 : 6 : 3 : 10.