A B and C are partner in ratio 3:2:1. D is admitted in the firm for the 1/6th share in profits. C would retain his original share. The new profit sharing ratio between A,B,C & D will be.
How to calculate the above question.
Regards
Santosh
Santosh (accounts) (28 Points)
10 June 2013A B and C are partner in ratio 3:2:1. D is admitted in the firm for the 1/6th share in profits. C would retain his original share. The new profit sharing ratio between A,B,C & D will be.
How to calculate the above question.
Regards
Santosh
@rinssss
(ca)
(119 Points)
Replied 11 June 2013
Let new share of firm be 1
D's Share is 1/6 therefore remaining share of firm is
1 - 1/6 = 5/6
C's Share = 1/6 or 6/36
Remaining share 5/6 - 1/6 = 4/6
A's share = 4/6 * 3/6= 12/36
B'share = 4/6 * 2/6 = 8/36
A:B:C:D = 12:8:6:6 or 6:4:3:3
Romil
(Student)
(88 Points)
Replied 11 June 2013
I think the answer is slightly incorrect.
A's share will be 4/6 * 3/5 = 12/30
B's share will be 4/6 * 2/5 = 8/30
(C's share is 1/6 or 5/30; D's share is 1/6 or 5/30)
So, the final ans will be 12:8:5:5.
(In the ratio 6:4:3:3, C's and D's share is 3/16 (each), which is certainly not 1/6.
But, in 12:8:5:5, C's and D's share is 5/30 (each), or 1/6.)
Please let me know if my reasoning is correct.
Nitish Agrawal
(CA)
(810 Points)
Replied 11 June 2013
| Originally posted by : Rajat Bajaj | ||
 |
Agree with Rinssss G. |
 |
Vijayashankar.Y,CA Final
(student)
(115 Points)
Replied 11 June 2013
Agree with Mr.Romil.
C & D take 33.33 % share together.
So the balance 66.666 % has to be shared amongst A & B in the old ratio of 3 : 2.
Thus new share is A-40 %
B-26.66%
C-16.67%
D-16.67%
Fall Out Boy
(Article Trainee)
(83 Points)
Replied 11 June 2013
Here is the calculation.
Partners Old Ratio Workings New Ratio
A 3/6 *5/5 - 1/6 *3/5 12/30
B 2/6 *5/5 - 1/6 *2/5 8/30
C 1/6 *5/5 - 5/30
D - + 1/6 *5/5 5/30
New Ratio = A : B : C : D => 12 : 8 : 5 : 5
Those who are unable to solve it, kindly brush up their concepts.
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