A, B and C are partners sharing profits in the ratio of 2 : 2 : 1. D is admitted as a new partner for 1/6th share. C will retain his original share. Calculate the new profit-sharing ratio and sacrificing ratio. 

Solution

Calculation of New Profit-Sharing Ratio

Old Ratio of A, B and C  is 2 : 2 : 1
. D is admitted for 1/6th share while . C will retain his 1/5 original share
Remaining  share= 1-1/6-1/5
Remaining  share will be shared by A and B in 2: 2  (old).

A’s= 19/30 ×2/4
 = 38/120
B’s= 19/30 × 2/4
 = 38/120
C’s= 1/5 × 24/24
 = 24/120
D’s= 1/6 × 20/20
 = 20/120
ABCD
38382420
19191210

*Since nothing is mentioned about the sacrifice made by the existing partners, it is assumed that A and B sacrifice in their old ratio.
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old ratio- new ratio

A’s= 2/5-19/60
 = 24-19/60 = 5/60
B’s= 2/5-19/60
 = 24-19/60 = 5/60
Sacrificing Ratio of A:B =5: 5 = 1: 1


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