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A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20 respectively. E joins the partnership for 20 share and A, B, C and D in future would share profits among themselves as 3/10 : 4/10 : 2/10 : 1/10. Calculate new profit-sharing ratio after admission. |
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Answer» fit-sharing ratio is calculated below. Explanation:Profit and Loss sharing ratio between A:B:C:D is given as 36: 24: 20: 20. E’s share of profit after his admission = 20/100 CALCULATING combined share of A, B, C and D after E’s admission = 1- E’s share Calculation of new ratio:New Ratio = Combined share of A,B,C, D AGREED share of A,B,C,D as given A’s new share B’s new share C’s new share D’s new shareThus, new profit-sharing ratio becomesThis can be written as Thus, the new profit-sharing ratio after admission will be |
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