Vidya, Sandhya, Lata and Sudha are partners sharing profit's in the ratio of 3:2:1:4.
Vidya retires and her share is acquired by Sandhya and Lata in the ratio of 3:2, calculate new profit sharing ratio of the remaining partners?
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Explanation:
sharing profit's ratio of 3:2:1:4
Vidya retires and her share is acquired by Sandhya and Lata in the ratio of 3:2
(Vidya's share) acquired by Sandhya =
3/10 × 3/5 = 9/50
(Vidya's share) acquired by Lata =
3/10 × 2/5 = 6/50
new share of Sandhya =
2/10 + 9/50 = 10+9/50 = 19/50
new share of Lata =
1/10 + 6/50 = 5+6/50 = 11/50
new share of Sudha =
4/10 = 20/50
new profit sharing ratio:
19/50 : 11/50 : 20/50
.°. new profit sharing ratio = 19:11:20
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