Question

Aaju & Baaju were sharing profits in the ratio of 3 : 2. They decided to admit Chaman

into the partnership for 1/6th share of the future profits. Goodwill valued at 4 times the

average super profits of the firm was Rs 18,000. The firm had Assets worth Rs 15,00,000

and Liabilities Rs 12,00,000. The normal earning capacity of such firms is expected to be at

10% p.a. Find the Average / Actual Profits earned by the firm during the last 4 years.​

Answer 1

Explanation:

Old ratio (A and B) = 3 : 2

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratio

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25C's share = A's sacrifice + B's sacrifice

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25C's share = A's sacrifice + B's sacrifice = (1/5) + (1/25)

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25C's share = A's sacrifice + B's sacrifice = (1/5) + (1/25) = 6/25

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25C's share = A's sacrifice + B's sacrifice = (1/5) + (1/25) = 6/25New profit sharing ratio = A : B : C

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25C's share = A's sacrifice + B's sacrifice = (1/5) + (1/25) = 6/25New profit sharing ratio = A : B : C = 2/5 : 9/25 : 6/25

Old ratio (A and B) = 3 : 2Sacrificing ratio = Old ratio * surrender ratioA's sacrifice = (3/5) * (1/3) = 1/5B's sacrifice = (2/5) * (1/10) = 1/25New ratio = Old ratio - sacrificing ratio A's new ratio = (3/5) - (1/5) = 2/5B's new ratio = (2/5) - (1/25) = 9/25C's share = A's sacrifice + B's sacrifice = (1/5) + (1/25) = 6/25New profit sharing ratio = A : B : C = 2/5 : 9/25 : 6/25 = 10 : 9 : 6