Geetha and John are partners sharing profits and losses in the ratio 3:1. Thomas is admitted in to the partnership with 1/3 share in profits which he acquires wholly from Geetha. Determine the new profit sharing ratio and sacrificing ratio if any. a)3:1:1 and 1:1. b)5:3:4 and nil. c)3:1:2 and nil. d)None of these.
Answers
Answer: Option B) 5 : 3 : 4 and nil.
Step by step Explanation:
Given that,
Old profit sharing ratio of Geetha and John is 3 : 1.
Thomas is admitted as a new partner with 1/3rd share in future profits, which is acquired wholly from Geetha.
That means, Geetha sacrifices 1/3rd share in favour of the new partner Thomas.
We know that,
New ratio = Old ratio - Sacrificing ratio
Geetha's new ratio = 3/4 - 1/3 = 5/12
John's new share = 1/4 - 0 = 1/4 or 3/12 [no sacrifice ratio]
Thomas' share = 1/3 or 4/12 [given]
New profit sharing ratio of partners = 5/12 : 3/12 : 4/12 or 5 : 3 : 4.
Thus, the new profit sharing ratio is 5 : 3 : 4 and there's no sacrficing ratio. [Option b) 5 : 3 : 4]
Given :-
Geetha and John are partners sharing profits and losses in the ratio 3:1. Thomas is admitted in to the partnership with 1/3 share in profits which he acquires wholly from Geetha
To Find :-
Determine the new profit sharing ratio and sacrificing ratio
Solution :-
It is stated that Geetha and John are partner with ratio 3:1. This means, Total share = 3 + 1 = 4.
After John leave the partnership. So, his new ratio is 0. And Thomas is admitted with 1/3 share in the profit. Hence,Geetha New Ratio will be 2/3
For Geetha
New ratio = Old ratio - Sacrificing ratio
New ratio = 3/4 - 1/3
New ratio = 9 - 4/12
New ratio = 5/12
For John
New ratio = 1/4 - 0
New ratio = 1/4 = 3/12
For Thomas
New ratio = 1/3 - 0
New ratio = 1/3 = 4/12
5/12 : 3/12 : 4/12
5 : 3 : 4
Option B is corect