Blog: Mgt101 GDB No. 2 solution

Q: Mr. A and Mr. B are partners sharing the profits in the ratio of 2 & 3. Mr. C is admitted into the partnership with 1/5th share of future profits. Calculate the new profit sharing ratio and the sacrifice ratio.

Ans: Now first of all we calculate the sacrifice ratio after that we calculate the sharing ratio. 
Solution

Sacrifice Ratio
Mr. A: Mr. B
2: 3
= 2* 1/5: 3* 1/5
= 0.4: 0.6
Profit sharing ratio
A : B : C
= 2-0.4:3-0.6:0.4 + 0.6
=1.6: 2.4 :1.0
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Q: Mr. A and Mr. B are partners sharing the profits in the ratio of 2 & 3. Mr. C is admitted into the partnership with 1/5^th share of future profits. Calculate the new profit sharing ratio and the sacrifice ratio.

Ans: Now first of all we calculate the sacrifice ratio after that we calculate the sharing ratio.

Solution

Sacrifice Ratio
                                        Mr. A: Mr. B
                                                2: 3
                                     = 2* 1/5: 3* 1/5
                                          = 0.4: 0.6
Profit sharing ratio
                                           A  :   B  :        C
                                    = 2-0.4:3-0.6:0.4 + 0.6
                                        =1.6:   2.4 :1.0