A, B and C are partners sharing profits in the ratio of 3:2:1. They admit D for 1/6 share. C would retain his old share. What will be the new ratio of all partners?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 12:8:5:5.
D's share = 1/6
C will retain his old share. So, Only A and B sacrifice in ratio of 3 : 2
Calculation of sacrifice share :
A’s sacrifice = 3/5 of 1/6
= 3/30
B’s sacrifice = 2/5 of 1/6
= 2/30
C’s sacrifice = Nil
Calculation of New profit sharing Ratio :
New share = Old share – Sacrifice share
A’s new share = 3/6 – 3/30
= (15-3)/30
= 12/30
B’s new share = 2/6 – 2/30
= (10-2)/30
= 8/30
C’s new share = Same as old share i.e. 1/6
D’s new share = 3/30 + 2/30
= 5/30
New ratio among A, B, C and D
12/30 : 8/30 : 1/6 : 5/30
12/30 : 8/30 : 5/30 : 5/30
= 12 : 8 : 5 : 5