E T B Best PGDM Institute in Delhi PGDM Course in Delhi MBA AGU Best PGDM College in Delhi NCR Best MBA Colleges in Bangalore Best School in Noida Top Boarding School in Noida Top Boarding School in Delhi

Calculation of New Profit Sharing Ratio.

A and B are partners in a firm sharing profit and loss in the ratio of 3:2. They admit C as a new partner for 1/10 share of profit which is given by A and B equally, Afterwards they admit D as a new partner for 1/6 share and A decides to retain his original share.
Calculate new ratio between A, B and C and then between A, B, C and D.

asked Sep 28, 2016 in Partnership-Admission by Shekhar (54 points) 1,757 views

1 Answer

0 votes

C’s share 1/10 is acquired equally from A and B hence each sacrifices (1/10)/2 = 1/20

A’s new share (3/5-1/20) = 11/20

B’s new share (2/5-1/20) =   7/20

Ratio of A::B: C 11:7:2

As A retains his old share, it means he will have 3/5 share in profits. This means after giving 1/6 to C, out of remaining 5/6 we have to give 3/5 to A and balance remaining will be B’s share.

Balance let after giving C (1 - 1/6 ) = 5/6

Balance after giving 3/5 to A (5/6 – 3/5) = 7/30 (this is B’s new share)

New ratio of A: B:C = 3/5 : 7/30 : 1/6 = 18:7:5


answered Sep 28, 2016 by jbsclasses (3,971 points)