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Accountancy
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A , B and C are partners sharing profits in the ratio of 5:3:2. D is admit as a new partner for 1/10th share in profits. D acquired 60% of his share from A and remaining share equally from B and C. Calculate the new profit sharing ratio.

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Answer:

Since C was made a partner for 1/4th of the share, it

means that the remaining share, that is, 3/4th of the share

was invested by A & B. 

Now, let's calculate A's and B's sacrifice in favour of C, as:

A's sacrifice in favour of C = 3/4 × 1/2 = 3/8

B's sacrifice in favour of C = 3/4 × 1/2 = 3/8

New ratio = A: B: C = 3/8 : 3/8: 1/4 = 3/8 : 3/8: 2/8 = 3: 3: 2.

We can now calculate the sacrificing ratio by using the

relation: Sacrificing ratio = Old ratio - New ratio

 Sacrifing ratio for A = 3/5 - 3/8 = 24/40 - 15/40 = 9/40

 Sacrifing ratio for B = 2/5 - 3/8 = 16/40 - 15/40 = 1/40

Sacrificing ratio for A and B together is = 9/40 : 1/40 = 9:1

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