Question

Arun, Bhushan and Chetan are partners in a firm sharing profits in 3 : 2 : 3 ratio. They decide to admit Sehzad as a partner. Arun surrendered 1/3 of his share in favour of Sehzad, Bhushan surrendered 1/4 of his share in favour of Sehzad and Chetan surrendered 1/5 of his share in favour of Sehzad. Calculate new profit sharing ratio.

Answer 1

Answer:

New ratio = 20:15:24:21

Explanation:

Arun:Bhushan:Chetan = 3:2:3

Arun's new share =

3/8 - (3/8 × 1/3) = 2/8 × 20/20 = 40/160

Bhusan's new share =

2/8 - (2/8 × 1/4) = 3/16 × 10/10 = 30/160

Chetan's new share =

3/8 - (3/8 × 1/5) = 12/40 × 4/4 = 48/160

Sehzad's share =

1/8 + 1/16 + 3/40 = 21/80 × 2/2 = 42/160

So, New Ratio = 40:30:48:42 = 20:15:24:21