Question

K, L, M are partner sharing in the ratio of 3:2:1 .they admit N for1/6 th share. M retain his original share. Calculate new profit sharing ratio. You

Answer 1

Answer:

12:8:5:5

Explanation:

let total share of firm be 1

share given to N 1/6

remaining share 1-1/6= 5/6

M will retain the old ratio

then

5/6-1/6= 4/6 us actual share available for K and L

this 4/6 will be share by K and L in their old ratio.

K = 4/6 * 3/5 = 12/30

L = 4/6 * 2/5 = 8/30

M = 1/6 * 5/5 = 5/30

N = 1/6 * 5/5 = 5/30

new ratio is 12:8:5:5

Answer 2

Answer:

New Profit Sharing Ratio =

K : L : M : N = 12 : 8 : 5 : 5

Explanation:

★ Old Ratio :

K : L: M = 3 : 2 : 1

• K's Share = $\dfrac{3}{6}$

• L's Share =$\dfrac{2}{6}$

• M's Share =$\dfrac{1}{6}$

They admit N for1/6 th share

• N's Share =$\dfrac{1}{6}$

M retain his original Share

• M's original Share = $\dfrac{1}{6}$

Total Share of M and N =

$\dfrac{1}{6} + \dfrac{1}{6} = \dfrac{2}{6}$

Let,

Total Share of the firm = 1

Balance of Share remains for K and L=

$1 - \dfrac{2}{6} = \dfrac{2}{3}$

Remaining Share divided into K and L in their old ratio 3 : 2

★ New Profit Sharing Ratio :

New Share = old Share × Remaining Share

• K's New Share =

$\longrightarrow \: \dfrac{3}{5} \times \dfrac{2}{3} = \dfrac{6}{15}$

• L's New Share =

$\longrightarrow \: \dfrac{2}{5} \times \dfrac{2}{3} = \dfrac{4}{15}$

• M's Share =

$\longrightarrow \: \dfrac{1}{6}$

• N's Share =

$\longrightarrow \: \dfrac{1}{6}$

New Profit Sharing Ratio =

• K : L : M : N

• $\dfrac{6}{15} : \dfrac{4}{15} : \dfrac{1}{6} : \dfrac{1}{6}$

$\longrightarrow\: \dfrac{12}{30} : \dfrac{8}{30} : \dfrac{5}{30} : \dfrac{5}{30}$

$\longrightarrow$ 12 : 8 : 5 : 5

∴ New Profit Sharing Ratio =

K : L : M : N = 12 : 8 : 5 : 5