Rao and Swami are partners in a firm sharing profits and losses in 3:2 ratio. They admit Ravi as a new partner for 1/8 share in the profits. The new profit sharing ratio between Rao and Swami is 4:3. Calculate new profit sharing ratio and sacrificing ratio?
Answers
Given : Rao and Swami are partners in a firm sharing profits and losses in 3:2 ratio. They admit Ravi as a new partner for 1/8 share in the profits. The new profit sharing ratio between Rao and Swami is 4:3.
Solution :
Old ratio of old partners : Rao : Swami = 3 : 2
Let the total profit be 1.
Ravi's share = ⅛
Remaining profit = 1 - ⅛ = (8 - 1)/8 = ⅞
Rao's and Swami's share are calculated dividing the remaining share in their new profit sharing ratio :
Rao's new share = ⅞ × 4/7 = 28/56 = 4/8
Swami's New share = 7/8 × 3/7 = 21/56 = ⅜
Ravi's share = ⅛
New profit Shares = 4/8 : ⅜ : ⅛ = (4 : 3 : 1)/8
New profit sharing ratio : 4 : 3 : 1
Sacrificing ratio = old ratio - new ratio
Rao's sacrifice = ⅗ - 4/8 = (24 - 20)/40 = 4/40
Swami's's sacrifice = 2/5 - 3/8 = (16 - 15)/40 = 1/40
Sacrificing ratio = 4/40 : 1/40 = 4 : 1
Hence the Sacrificing ratio of Rao and Swami is 4 : 1.
Hope this answer will help you….
Here are some more questions from this chapter :
Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3 ratio. They admitted Jain as a new partner. Singh surrendered 1/3 of his share in favour of Jain: Gupta surrendered 1/4 of his share in favour of Jain and Khan surrendered 1/5 in favour of Jain. Calculate new profit sharing ratio?
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Sandeep and Navdeep are partners in a firm sharing profits in 5:3 ratio. They admit C into the firm and the new profit sharing ratio was agreed at 4:2:1. Calculate the sacrificing ratio?
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Explanation:
solution :
old ratio =
Rao and Swami = 3 : 2
share of Rao = 3/5
share of Swami = 2/5
They admit Ravi as a new partner for 1/8 shares in the profit.
Ravi's share = 1/8
suppose,
Total profit = 1
1 - 1/8 = 7/8
Remaining share = 7/8
The new profit sharing ratio between Rao and Swami is 4:3
New profit sharing ratio =
New share of Rao = 7/8 × 4/7
= 28/56
New share of Swami = 7/8 × 3/7
= 21/56
Share of Ravi = 1/8
= 1/8 ×7/7
= 7/56
New profit sharing ratio =
Rao : Swami : Ravi = 28/56 : 21/56 : 7/56
= 28 : 21 : 7
= 4 : 3 : 1
New profit sharing ratio of Rao, Swami and Ravi = 4 : 3 : 1
Sacrificing Ratio :
Old ratio - New ratio
Rao's sacrifice =
= 3/5 - 4/8
= 24 - 20/40
= 4/40
Swami's sacrifice =
= 2/5 - 3/8
= 16 - 15/40
= 1/40
Sacrificing Ratio =
Rao : Swami = 4/40 : 1/40
= 4 : 1
Hence,
New profit sharing ratio of Rao, Swami and Ravi = 4 : 3 : 1 and
Sacrificing Ratio of Rao and Swami = 4 : 1