Question

A, B and C are partners sharing profits in the ratio of 2 : 2 : 1 respectively. They admit D for 1/6th share in the firm. Calculate the sacrificing ratio.

Answer 1

1. Find the New Profit Sharing Ratio

Total Profit Share: 1

D's Share: `1/6`

Remaining Share for A, B, and C:

`1 - 1/6 = 5/6`

This remaining share is divided among A, B, and C in their old ratio of 2 : 2 : 1:

A's New Share: `5/6 xx 2/5 = 2/6`

B's New Share: `5/6 xx 2/5 = 2/6`

C's New Share: `5/6 xx 1/5 = 1/6`

2. Calculate Individual Sacrifice

Formula: Sacrifice = Old Share − New Share

A's Sacrifice: `2/5 - 2/6 = (12 - 10)/30 = 2/30`

B's Sacrifice: `2/5 - 2/6 = (12 - 10)/30 = 2/30`

C's Sacrifice: `1/5 - 1/6 = (6 - 5)/30 = 1/30`

The Sacrificing Ratio among A, B, and C is:

2 : 2 : 1