Question Details

A, B and C are partners sharing profits in the ratio of 3:2:1. D is admitted into firm for 1/4 th share of profit, which he gets 1/8 from A and 1/8 from B. Calculated new sharing ratio of all the partners

Options

A

1:1:1:1

B

9:5:4:6

C

9:4:5:6

D

9:5:6:4

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Correct Answer :

Option B

9:5:4:6

Solution :

The correct option is 9:5:4:6.

Here is the step-by-step calculation to find the new profit-sharing ratio of all partners:

1. Identify the Old Profit-Sharing Ratio:
The old profit-sharing ratio of partners A, B, and C is given as 3:2:1.
Therefore, their individual old shares are:
Share of A = 36
Share of B = 26
Share of C = 16

2. Calculate the Share Sacrificed by Old Partners:
D is admitted for a 14th share, which he acquires:
From A = 18
From B = 18
(Note: C does not sacrifice any portion of his share for D.)

3. Calculate the New Shares of Partners:
New Share = Old Share - Share Sacrificed

For A:
New Share of A = 36-18
To subtract these, we find the Least Common Multiple (LCM) of 6 and 8, which is 24.
New Share of A = 12-324=924

For B:
New Share of B = 26-18
Using the LCM of 24:
New Share of B = 8-324=524

For C:
C did not make any sacrifice, so his share remains unchanged:
Share of C = 16
To express C's share with the common denominator of 24, we multiply the numerator and denominator by 4:
Share of C = 1×46×4=424

For D:
Share of D = 14
To express D's share with the common denominator of 24, we multiply the numerator and denominator by 6:
Share of D = 1×64×6=624

4. Determine the New Profit-Sharing Ratio:
Comparing the new shares of all partners (A, B, C, and D):
A : B : C : D = 924:524:424:624
Thus, the new profit-sharing ratio is 9:5:4:6.

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