New Profit Sharing Ratio

PROFIT SHARING RATION OF A:B  = 7:3

 SO AFTER ADMISSION OF C :=

1. 'A' SACRIFICES 1/7TH SHARE OF HIS PROFIT SO NOW A WILL GET [ 7/10 - {7/10*1/7}] 6/10

2. 'B' SACRIFICES 1/3RD SHARE OF HIS PROFIT SO NOW B WILL GET [3/10 - {3/10*1/3}] 2/10

3. NOW 'C' WILL GET THE TOTAL OF WHAT A & B SACRIFICED :[{7/10*1/7} + {3/10*1/3}] 2/10

SO NEW PROFIT SHARING RATIO A:B:C = 6:2:2

THE CORRECT RATIO IS 6:2:2 i.e 3:1:1

agreed with all

cheers

Agree with all bt this The easiest way to calculate new PSR in casr of admission/retirement/death:

LET us assume PROFIT=100

SO distribtion of profit before admission of C would b A =70 nd B=30

and after admission of C,  A will get 70-10(1/7th)=60, B 30-10(1/3)=20, C=20.

u can apply this logic in each case.

Amit,Rohith & Sumit are partners sharing sharing profit & losses in the ratio of 5:4:3. Sumit retries and if Amit & Rohit shares profit of Sumit in 4:3, the NPSR will be?
 

new ratio of  A   =   7/10-7/10*1/7 = 7/10-1/10 = 6/10

 //      //      //   B    =   3/10-3/10*1/3 = 3/10-1/10 = 2/10

         //      //    C    =  7/10*1/7+3/10*1/3  = 1/10+1/10 = 2/10

now new ratio A:B:C = 6:2:2 = 3:1:1

sacrificed ratio  A:B  =  1:1

Souniya , first assume profit =84( i wl expalin the logic of assumpion if u r interested)

                                                                                      A          R         S

distribution of profit of 84 before retirement        35        28        21

distribution of profit of 84 after retirement            35        28

Share of sumit share of 21 TO A & R                    12          9

total                                                                              47         37

so new psr 47:37

                                                               A                                         R                     S

    PSR before retirement           5/12=.416                             4/12=.334          3/12=.250

    PSR after retirement               .416                                         .334

Add: Share of S  to rest A & B    .250*(4/7)=.1428           .250*(3/7)=.1071 

NPSR                                       A=        .559                  B=         .441          

A:7/10*1/7=1/10

(-)1/10

new psr=6/10

B:3/10*1/3=1/10

(-)1/10

new psr=2/10

c:1/10+1/10=2/10

new psr:- 6:2:2