A and B are partners sharing profits in the ratio of 3 : 2. C was admitted for 1/6th share of profit With minimum guaranteed amount of Rs. 10,000. At the close of the first financial year the firm earned a profit of Rs. 7,54,000. Find out the share of profit which A, B and C will get.

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Solution

Calculation of New Share of profit
Let Total Share be 1.
Share of incoming partner-1/6
Remaining share- 1-1/6=5/6
A's new ratio = 5/63/5= 15/30
B's new ratio = 5/62/5= 10/30
C's new ratio= = 5/30
New ratio = 3:2:1

Calculation of share of profit
A's share= 7,54,0003/6 =3,77,000
B's share=7,54,0002/6= 2,51,333
C's share=7,54,000*1/6= 125667

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