Question

On 1-4-2017. Sanita and Samira entered in to partnership for sharing profits in the
ratio of 4:3. They admitted Tanu as new partner for one fifth share which she
acquired fully from Sanita. They earn profit at a higher rate than the normal rate of
return for the year ended 31-03-2018. Therefore they decided to expand their
business and admitted Shanaya as a new partner on 1-4-2018 for one seventh share
in profit which she acquired from Sanita and Samira in 7:3 ratio. Calculate new ratio
as on 1-4-2018​

Answer 1

Answer:

Explanation:

As on 1-4-2017, profit sharing ratio between Sanita and Samira is 4:3

⇒ Sanita's share = $\frac{4}{7}$

and Samira's share = $\frac{3}{7}$

New partner Tanu gets $\frac{1}{5}$ share from Sanita

∴ Sanita's new share = $\frac{4}{7}$ - $\frac{1}{5}$ = $\frac{13}{35}$

Samira's new share = $\frac{3}{7}$ = $\frac{15}{35}$

Tanu's share = $\frac{1}{5}$ = $\frac{7}{35}$

∴ New profit sharing ratio = 13:15:7

New partner Shanaya gets $\frac{1}{7}$ share from Sanita and Samira in the ratio 7:3

∴ Sanita gives up = $\frac{7}{10}$ X $\frac{1}{7}$ = $\frac{1}{10}$

and Samira gives up = $\frac{3}{10}$ - $\frac{1}{7}$ = $\frac{3}{70}$

∴ Sanita's new share = $\frac{13}{35}$ - $\frac{1}{10}$ = $\frac{19}{70}$

Sanita's new share = $\frac{15}{35}$ - $\frac{3}{70}$ = $\frac{27}{70}$

Tanu's new share = $\frac{7}{35}$ = $\frac{14}{70}$

Shanaya's share = $\frac{1}{7}$ = $\frac{10}{70}$

∴ New profit sharing ratio = 19:27:14:10