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Question

A,B and C are partners sharing profits in the ratio of 4:3:2. D is admitted for 1/3rd share in future profits. What is the sacrificing ratio?

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Solution

Old ratio (A: B: C) = 4: 3: 2
D is admitted for 1/3 share of profit
Let the combined share of profit of A, B, C and D be = 1
Combined share of A, B and C after D's admission = 1 - D's share
= 1 - 1/3
= 2/3

New ratio = Old ratio - Combined share of A ad B and C
A's share = 4/9 X 2/3 = 8/27
B's share = 3/9 X 2/3 = 6/27
C's share = 2/9 X 2/3 = 4/27

Sacrificing ratio = Old ratio - New ratio
A's share = 4/9 - 8/27 = 4/27
B's share = 3/9 - 6/27 = 3/27
C's share = 2/9 - 4/27 = 2/27

Sacrificing ratio (A: B: C) = 4/27: 3/27; 2/27
=4: 3: 2

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