Question

Anshu and Nitu are partners sharing profits in the ratio of 3:2. They admitted Jyoti as a new partner for 3/10 share. Jyoti acquired 2/10 from Anshu and 1/10 from Nitu. Calculate the new profit sharing ratio of Anshu , Nitu and Jyoti

• A. 4 : 3 : 3
• B. 3 : 4 : 3
• C. 3 : 3 : 4
• D. 3 : 2 : 1

Answer 1

The Correct Option is A

Anshu and Nitu initially share profits in a 3:2 ratio. Jyoti is admitted as a partner, receiving a 3/10 share of future profits. This share is acquired through sacrifices from Anshu (2/10) and Nitu (1/10).

Step 1: Determine Jyoti's Profit Share
Jyoti's total share in the new profit-sharing arrangement is 3/10. This is the aggregate of the shares contributed by Anshu (2/10) and Nitu (1/10).

Jyoti’s Share = $ \frac{3}{10} $

Step 2: Quantify Sacrifices by Anshu and Nitu
Anshu sacrifices 2/10 of the profits, and Nitu sacrifices 1/10, totaling the amount Jyoti receives.

Step 3: Compute the Revised Profit-Sharing Ratio
Anshu's adjusted share is calculated as follows:

Anshu’s New Share = Original Share - Sacrifice = $ \frac{3}{5} - \frac{2}{10} = \frac{6}{10} - \frac{2}{10} = \frac{4}{10} $

Nitu's adjusted share is calculated as follows:

Nitu’s New Share = Original Share - Sacrifice = $ \frac{2}{5} - \frac{1}{10} = \frac{4}{10} - \frac{1}{10} = \frac{3}{10} $

Jyoti's share is explicitly stated as 3/10.

Consequently, the new profit-sharing ratio among the partners is:

Anshu : Nitu : Jyoti = $ \frac{4}{10} : \frac{3}{10} : \frac{3}{10} $

Upon simplification, the new profit-sharing ratio is:

New Profit-Sharing Ratio = $ 4 : 3 : 3 $