Ownclasses

On 1-4-2010 Sahil and Charu entered into partnership for sharing profits in the ratio of 4: 3. They admitted Tanu as a new partner on 1-4-2012 for 1/5th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31-3-2013. Therefore, they decided to expand their business. To meet the requirements of additional capital they admitted Puneet as a new partner on 1-4-2013 for 1/7th share in profits which he acquired from Sahil and Charu in 7: 3 ratio.
Calculate: 
(i) New profit sharing ratio of Sahil, Charu and Tanu for the year 2012-13.
(ii) New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet's admission.

Answer

Calculation of New Profit Sharing Ratio of Sahil, Charu and Tanu for the year 2012-13
Old Ratio of Sahil and Charu = 4:3
Tanu admitted for 1/5th share, acquired by her equally from Sahil and Charu
Calculation of sacrificing ratio:
Sahil = 1/5 * ½ = 1/10
Charu = 1/5 * ½ = 1/10

New Profit Share = Old Share – Sacrificing Share
Sahil: 4/7 – 1/10 = (40-7)/70 =33/70
Charu: 3/7 – 1/10 = (30-7)/70 = 23/70
And Tanu: 1/5 or 14/70
Therefore, New Profit Sharing Ratio of Sahil, Charu and Tanu = 33: 23: 14

Calculation of New Profit Sharing Ratio of Sahil, Charu, Tanu and Puneet
Old Ratio of Sahil, Charu and Tanu = 33: 23: 14
Puneet admitted for 1/7th share, acquired from Sahil and Charu in the ratio of 7: 3

Calculation of sacrificing ratio:
Sahil = 1/7 * 7/10 = 7/70
Charu = 1/7 * 3/10 = 3/70

New Profit Share = Old Share – Sacrificing Share
Sahil: 33/70 – 7/70 = 26/70
Charu: 23/70 – 3/70 = 20/70
Tanu: 14/70
Puneet = 1/7 or 10/70
Therefore, New Profit Sharing Ratio of Sahil, Charu, Tanu and Puneet = 26: 20: 14: 10