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A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.?
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A, B and C were partners and losses in the ratio of 5:3:2. They admitt...
Introduction
In a partnership, when a new partner is admitted, the existing partners may need to adjust their profit-sharing ratios. Here, we will compute the new ratio and sacrificing ratio for partners A, B, C, and D.
Existing Profit Sharing Ratio
- A : 5
- B : 3
- C : 2
Total = 5 + 3 + 2 = 10
- A’s share = 5/10 = 1/2
- B’s share = 3/10 = 3/10
- C’s share = 2/10 = 1/5
D's Admission and Share
- D is admitted for a 1/5 share.
Share Surrendered by B
- B surrenders 1/3 of his share to D.
- B’s share = 3/10
- Share surrendered by B = (1/3) * (3/10) = 1/10
Calculating D's Share
- D’s share = 1/5 = 2/10
- B’s remaining share = 3/10 - 1/10 = 2/10
New Profit Sharing Ratio
- A = 1/2 = 5/10
- B = 2/10
- C = 1/5 = 2/10
- D = 2/10
Thus, the new ratio becomes:
- A : B : C : D = 5:2:2:2
Calculating Sacrificing Ratio
- A’s sacrifice = 0 (no share surrendered)
- B’s sacrifice = 1/10 (surrendered)
- C’s sacrifice = 0 (no share surrendered)
Final Sacrificing Ratio
- B’s sacrifice = 1/10
- Total sacrifice = 1/10
- Sacrificing ratio for B = 1/10
Thus, the sacrificing ratio is:
- A : B : C = 0 : 1/10 : 0
Conclusion
The new profit-sharing ratio is 5:2:2:2, while the sacrificing ratio is effectively 0:1:0, indicating that only B sacrificed part of his share.
In a partnership, when a new partner is admitted, the existing partners may need to adjust their profit-sharing ratios. Here, we will compute the new ratio and sacrificing ratio for partners A, B, C, and D.
Existing Profit Sharing Ratio
- A : 5
- B : 3
- C : 2
Total = 5 + 3 + 2 = 10
- A’s share = 5/10 = 1/2
- B’s share = 3/10 = 3/10
- C’s share = 2/10 = 1/5
D's Admission and Share
- D is admitted for a 1/5 share.
Share Surrendered by B
- B surrenders 1/3 of his share to D.
- B’s share = 3/10
- Share surrendered by B = (1/3) * (3/10) = 1/10
Calculating D's Share
- D’s share = 1/5 = 2/10
- B’s remaining share = 3/10 - 1/10 = 2/10
New Profit Sharing Ratio
- A = 1/2 = 5/10
- B = 2/10
- C = 1/5 = 2/10
- D = 2/10
Thus, the new ratio becomes:
- A : B : C : D = 5:2:2:2
Calculating Sacrificing Ratio
- A’s sacrifice = 0 (no share surrendered)
- B’s sacrifice = 1/10 (surrendered)
- C’s sacrifice = 0 (no share surrendered)
Final Sacrificing Ratio
- B’s sacrifice = 1/10
- Total sacrifice = 1/10
- Sacrificing ratio for B = 1/10
Thus, the sacrificing ratio is:
- A : B : C = 0 : 1/10 : 0
Conclusion
The new profit-sharing ratio is 5:2:2:2, while the sacrificing ratio is effectively 0:1:0, indicating that only B sacrificed part of his share.
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A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.?
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A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.?.
A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.?.
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A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.?, a detailed solution for A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.? has been provided alongside types of A, B and C were partners and losses in the ratio of 5:3:2. They admitted D for 1/5th share. B surrendered 1/3 of his share in favour of D. A and C agreed to share future profits in equal proportion. Compute New Ratio as well as Sacrificing Ratio.? theory, EduRev gives you an
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