Q.8. A, B and C were partners in a firm sharing profits in 3:3:2 ratio. They admitted D as a new partner for 4/7 profit.

Q.8. A, B and C were partners in a firm sharing profits in 3:3:2 ratio. They admitted D as a new partner for 4/7 profit. D acquired his share 2/7 from A. 1/7 from B and 1/7 from C. Calculate new profit sharing ratio?

SOLUTION

Profit Sharing Ratio of P, Q and R $=3:2:1$

S's share $=\frac{1}{8}$ (acquired $\frac{1}{16}th$ share each from P and Q)

R's share $=\frac{1}{6}$ (retained original share)

P's new share $=\frac{3}{6}-\frac{1}{16}=\frac{21}{48}$

Q's new share $=\frac{2}{6}-\frac{1}{16}=\frac{13}{48}$

New Ratio of P, Q, R and S $=\frac{21}{48}:\frac{13}{48}:\frac{1}{6}:\frac{1}{8}$ or $21:13:8:6$

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