Rao and Swami are partners in a firm sharing profits and losses in 3:2 ratio. They admit Ravi as a new partner for 1/8 share in the profits. The new profit sharing ratio between Rao and Swami is 4:3. Calculate new profit sharing ratio and sacrificing ratio?
(New Profit Sharing Ratio) 4:3:1
(Sacrificing Ratio) 4:1
Explanation
This question tests the concept of admission of a partner where the new profit sharing ratio between old partners is given. The key is to first calculate the individual shares of old partners from the remaining share after deducting the new partner's share, then determine the sacrifice by comparing old and new shares.
Solution Steps
Step 1: Calculate Ravi's share = 1/8
Step 2: Calculate Remaining share for Rao and Swami = 1 - 1/8 = 7/8
Step 3: Calculate Rao's new share = 4//8 = 4/8 = 1/2
Step 4: Calculate Swami's new share = 3//8 = 3/8
Step 5: New Profit Sharing Ratio = 1/2 : 3/8 : 1/8 = 4/8 : 3/8 : 1/8 = 4:3:1
Step 6: Calculate Rao's sacrifice = Old Share - New Share = 3/5 - 1/2 = 6/10 - 5/10 = 1/10
Step 7: Calculate Swami's sacrifice = Old Share - New Share = 2/5 - 3/8 = 16/40 - 15/40 = 1/40
Step 8: Sacrificing Ratio = 1/10 : 1/40 = 4/40 : 1/40 = 4:1