Question

Two partners 'A' and 'B' share profit and loss in proportion of 3:2. 'C' join them for 1/4 share of profit , one year after Joining 'C' , 'B' retires and his son 'D' joins the firm for 1/3 profit. Find out the proportion in which A, C and D will share the profit.

Answer 1

Answer:

Old ratio (A and B) = 3 : 2

Sacrificing ratio = Old ratio * surrender ratio

A's sacrifice = (3/5) * (1/3) = 1/5

B's sacrifice = (2/5) * (1/10) = 1/25

New ratio = Old ratio - sacrificing ratio

A's new ratio = (3/5) - (1/5) = 2/5

B's new ratio = (2/5) - (1/25) = 9/25

C's share = A's sacrifice + B's sacrifice

= (1/5) + (1/25)

= 6/25

New profit sharing ratio = A : B : C

= 2/5 : 9/25 : 6/25

= 10 : 9 : 6