Question

$A,B$ and $C$ are partners sharing profit and losses in the ratio $5:4:1$ . Calculate new profit sharing ratio, sacrificing ratio in each of the following cases :
Case $1.C$ acquires $1/5th$ share from $A$.
Case $2.C$ acquires $1/5th$ share from $A$ and $B$
Case $3.A,B$ and $C$ will share future profits and losses equally.
Case $4.C$ acquires $1/10th$ share of $A$ and $1/2$ share of $B$ .

Answer 1

Case 1.

Calculation of new profit sharing ratio:

A's new ratio= old ratio-sacrifice

= 5/10-1/5

= 3/10

B's ratio= 4/10

C's new ratio= 1/10+1/5

= 3/10

New ratio= 3:4:3

Calculation of sacrificing ratio:

A's sacrifice= 1/5

C's gain= 1/5

Case 2.

Calculation of new profit sharing ratio:

A's new ratio= 5/10-1/5

= 3/10

B's new ratio= 4/10-1/5

= 2/10

C's new ratio= 1/10+1/5+1/5

= 5/10

New ratio= 3:2:5

Calculation of sacrificing ratio:

A's sacrifice= 1/5

B's sacrifice= 1/5

Ratio= 1:1

C's gain= 1/5+1/5

= 2/5

Case 3.

New profit sharing ratio= 1:1:1

Calculation of sacrificing ratio:

A's sacrifice= 5/10-1/3

= 5/30

B's sacrifice= 4/10-1/3

= 2/30

Sacrificing ratio= 5:2

C's gain= 7/30

Case 4.

Calculation of sacrificing ratio:

A's sacrifice= 5/10 * 1/10

= 5/100

B's sacrifice= 4/10 * 1/2

= 4/20

Sacrificing ratio= 5:20 = 1:4

Calculation of new profit sharing ratio:

A's new share= 5/10-5/100

= 9/20

B's new share= 4/10-4/20

= 4/20

C's new share= 5/100+4/20

= 25/100

New ratio= 45:20:25

= 9:4:5