Question

On 1-1-2008, Uday and Kaushal entered into partnership with fixed capitals of Rs 7,00,000 and Rs 3,00,000 respectively. They were doing good business and were interested in its expansion but could not do the same because of lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1-1-2010. Govind brought Rs 10,00,000 as capital and the new profit sharing ratio decided was 3 : 2 : 5. On 1-1-2012, another new partner Hari was admitted with a capital of Rs 8,00,000 for $\frac{1}{10}$th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1-4-2014 Govind died and his share was taken over by Uday and Hari equally.

Calculate :

(i) The sacrificing ratio of Uday and Kaushal on Govind's admission.

(ii) New profit sharing ratio of Uday, Kaushal, Govind and Hari on Hari's admission.

(iii) New profit sharing ratio of Uday, Kaushal and Hari on Govind's death.

Answer 1

(1) Calculation of Sacrificing Ratio :

Sacrificing Ratio of Uday $=\frac{1}{2}-\frac{3}{10}=\frac{5-3}{10}=\frac{2}{10}$

Sacrificing Ratio of Kaushal $=\frac{1}{2}-\frac{2}{10}=\frac{5-2}{10}=\frac{3}{10}$

Sacrificing Ratio = 2 : 3

(2) New Profit Sharing Ratio of Uday, Kaushal, Govind and Hari :

Uday's new share $=\frac{3}{10}-\frac{1}{30}=\frac{9-1}{30}=\frac{8}{30}$

Kaushal's new share $=\frac{2}{10}-\frac{1}{30}=\frac{6-1}{30}=\frac{5}{30}$

Govind's new share $=\frac{5}{10}-\frac{1}{30}=\frac{15-1}{30}=\frac{14}{30}$

Hari's share $=\frac{1}{30}+\frac{1}{30}+\frac{1}{30}=\frac{3}{30}$

Thus New Ratio $=8:5:14:3$

(3) New Profit Sharing Ratio on Govind's death :

Govind's share i.e., $\frac{14}{30}$ is taken over by Uday and Hari equally i.e., $\frac{14}{30}\times \frac{1}{2}=\frac{7}{30}$ each.

Uday's new share $=\frac{8}{30}+\frac{7}{30}=\frac{15}{30}$

Kaushal's new share $=\frac{5}{30}$

Hari's new share $=\frac{3}{30}+\frac{7}{30}=\frac{10}{30}$

Thus, New Ratio of Uday, Kaushal and Hari = 15 : 5 : 10 over 3 : 1 : 2