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A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D. |
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Answer» fit-sharing ratio is calculated below. Explanation:Old ratio between A, B and C is given as 3:2:1. A's Original Share D is to acquire 1/6 TH share each from B and CD's share Profit share D WOULD get after his admission = 1/8th of the profit To calculate new ratio, need to deduct 1/16th from C’s and B’s share. CALCULATION of new share: B’s new share C’s new share Thus, New profit-sharing ratio of A, B, C and D becomes This can ALSO be written as: 24:13: 5:6 Thus, the New profit-sharing ratio of A, B, C and D is |
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