lecture no.16 Calculate new profit-sharing ratio C acquires 1/5th share from A

Question 1:

A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:
Case 1. C acquires 1/5th share from A.
Case 2. C acquires 1/5th share equally form A and B.
Case 3. A, B and C will share future profits and losses equally.
Case 4. C acquires 1/10th share of A and 1/2 share of B.

ANSWER:

Calculation of New Profit Sharing RatioCase 1:A:B:C=5:4:1(Old Ratio)C acquires 15th from A A's sacrifice = 15 C's gain = 15A=510−15= 5−210=310B=410C=110+15=1+210 =310A:B:C=3:4:3Case 2:A:B:C=5:4:1(Old Ratio)C acquires 15th share equally from A A's sacrifice = 110B's sacrifice = 110C's gain = 15A=510−110=5−110=410B=410−110=4−110=310C=110+15=1+210=310A:B:C=4:3:3Case 3:A:B:C=5:4:1(Old Ratio)A:B:C=1:1:1(New Ratio)A=510−13=15−1030=530(Sacrifice)B=410−13=12−1030=230(Sacrifice)C=110−13=3−1030=−730(Gain)Case 4:A:B:C=5:4:1(Old Ratio)A's sacrifice to C=510×110=120B's sacrifice to C=410×12=420C's gain=120+420=520A=510−120=10−120=920B=410−420=8−420=420C=110+520=2+520=720A:B:C=9:4:7