Question

$A$ and $B$ are in partnership sharing profits and losses as $3:2$. $C$ is admitted for $1/4^{th}$ share. Afterwards $D$ enters for $20$ paise in the rupee. Compute profit-sharing ratio of $A,B,C$ and $D$ after $D^{\prime }s$ admission.

Answer 1

A's old share= 3/5

B's old share= 2/5

C is admitted for 1/4th share

Remaining share= 1-[1/4]

= 3/4

A's new share= 3/5 * 3/4

= 9/20

B's new share= 2/5 * 3/4

= 6/20

New Profit sharing ratio after C's admission= 9:6:5

Now, ratio before D's admission= 9:6:5

D is admitted for 20/100th share

Remaining share= 1-[20/100]

= 80/100

Hence, A's new ratio= 9/20 * 80/100

= 72/200

B's new ratio= 6/20 * 80/100

= 48/200

C's new ratio= 5/20 * 80/100

= 40/200

New profit sharing ratio after D's admission= 72:48:40:40

= 9:6:5:5