A, B and C are partners sharing profits in 3:2:2 ratio. They admitted D as a new partner for 1/5 share which he acquired from A, B and C in 2:2:1 ratio respectively. Calculate new profit sharing ratio?
New Profit Sharing Ratio of A:B:C:D = 61:36:43:35
Explanation
This is a numerical problem on admission of a partner where the new partner acquires his share from the existing partners in a specific ratio. The solution requires calculating the sacrifice made by each old partner and then determining their remaining shares. The answer provided in the textbook context confirms the calculation.
Solution Steps
Step 1: Calculate the old profit sharing ratio of A, B and C = 3:2:2. Total parts = 7. Therefore, A's share = 3/7, B's share = 2/7, C's share = 2/7.
Step 2: D is admitted for 1/5 share. D acquires this share from A, B and C in the ratio of 2:2:1. Total parts in acquisition ratio = 2+2+1 = 5.
Step 3: Calculate the share sacrificed by each partner: A sacrifices = 1//5 = 2/25; B sacrifices = 1//5 = 2/25; C sacrifices = 1//5 = 1/25.
Step 4: Calculate new shares of each partner: A's new share = 3/7 - 2/25 = (75-14)/175 = 61/175; B's new share = 2/7 - 2/25 = (50-14)/175 = 36/175; C's new share = 2/7 - 1/25 = (50-7)/175 = 43/175; D's share = 1/5 = 35/175.
Step 5: New Profit Sharing Ratio = 61/175 : 36/175 : 43/175 : 35/175 = 61:36:43:35.