QUESTION:-
A , B,C and D are partners sharing progits in the ratio of 4:3:2:1 . they admitted E as a new partner for 1/10th share. It is agreed that C and D will retain their original shares. what will be the new profit sharing ratio?
Answers
Given : A ,B, C and D are partners sharing progits in the ratio of 4:3:2:1. they admitted E as a new partner for 1/10th share. It is agreed that C and D will retain their original shares.
To Find : Find the new profite sharing ratio ?
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Solution : Let the new profite sharing ratio be x.
Old ratios :
- A : B : C : D
- 4 : 3 : 2 : 1
They admit E as a new partner for 1/10th Share.
- E's Share = 1/10
C and D will retain their original share.
- Total Share = 1
Balance of Share remain A and B
- Remaining Share divided into A and B in their old ratio 4 : 3.
New Profit Sharing Ratio :
- A's new Share
- B's new Share
- C's new Share
- D's new Share
- E's new Share
New Profit Sharing Ratio :
★
Hence,
- The new sharing ratio of A, B, C, D and E is 24 : 18 : 14 : 7 : 7.
Answer:
The total profit sharing ratio of A, B, C, and D is 4+3+2+1 = 10.
Let X be the total profit share, then the profit shares of A, B, C, and D are 4X/10, 3X/10, 2X/10, and 1X/10, respectively.
Now, E is admitted for 1/10th share, which is (1/10)X.
Since C and D will retain their original shares, the remaining profit share is 10X/10 - 2X/10 - 1X/10 = 7X/10.
So, the new profit sharing ratio will be:
A = 4X/10 + (1/10)X = 5X/10
B = 3X/10 + (1/10)X = 4X/10
C = 2X/10
D = 1X/10
E = 1X/10
Simplifying the ratios by dividing by 1/10, we get:
A:B:C:D:E = 50:40:20:10:10
Therefore, the new profit sharing ratio of A, B, C, D, and E is 50:40:20:10:10.