Question

A and B are partners sharing profits in the ratio of 3:2. They admit C, a new partner who acquires 1/5th of his share from A and 4/25th share from B. Calculate the new profit sharing ratio and sacrificing ratio.

Answer 1

Step 1: Calculation of Share of Incoming Partner Since C acquires 1/5th of his share from A, it means he acquires 4/5th 

(i.e. 1- 1/5th) of his share from 

B. If 4/5th shares = 4/25 

1 share = 4/25 × 5/4=1/5 

Step 2: Calculation of New Shares 

Share acquired by C : from A = 1/5 × 1/5 = 1/25, from B = 4/25 

A's New Share = 3/5 - 1/25 = 14/25, 

B’s New Share = 2/5 - 4/25 = 6/25 

Step 3: New Profit Snaring Ratio of A, B and C = 14/25 : 6/25 : 5/25 =14:6:5 

Step 4: Sacrificing Ratio of A and B = 1/25: 4/25 =1:4.