Question

A, B and C were partners in a firm sharing profits in 3 : 3 : 2 ratio. They admitted D as a new partner for $\frac{4}{7}$ profit. D acquired his share $\frac{2}{7}$ from A. $\frac{1}{7}$ from B & C each. Calculate new profit sharing ratio.

Answer 1

D's share $\frac{4}{7}$

Sacrifice of A = $\frac{2}{7}$

Sacrifice of B = $\frac{1}{7}$

Sacrifice of C = $\frac{1}{7}$

A's new share = $\frac{3}{8}-\frac{2}{7}=\frac{21-16}{56}=\frac{5}{56}$

B's new share = $\frac{3}{8}-\frac{1}{7}=\frac{21-8}{56}=\frac{13}{56}$

C's new share = $\frac{2}{8}-\frac{1}{7}=\frac{14-8}{56}=\frac{6}{56}$

Hence, new profit sharing ratio of A : B : C : D

$\frac{5}{56}:\frac{13}{56}:\frac{6}{56}:\frac{4}{7}$

or $\frac{5}{56}:\frac{13}{56}:\frac{6}{56}:\frac{32}{56}$

or 5 : 13 : 6 : 32