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A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C.

Calculate the new profit sharing ratio of A, B, C and D.

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#### Solution

Profit Sharing Ratio of A,B and C = 3:2:1

D's Share = 1/8 (acquired 1/16th share each from B and C)

A's Share = 3/6 (retained original share)

B's new share = (2/6) - (1/16) = 13/48

C's new share = (1/6) - (1/16) = 5/48

`"New Ratio of A,B,C and D ="3/6:13/48:5/48:1/8" or "24:13:5:6`

Concept: Admission of a Partner - Sacrifice Ratio and New Ratio

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