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Question

Adesh and Bhadresh are partners sharing profits and losses in the ratio of 3 ∶ 2. Chandresh is admitted for 20% of share in profits out of which half of the share was gifted by Adesh and remaining was acquired by Chandresh from Adesh and Bhadresh in equal proportion. What would be new profit-sharing ratio?

The correct answer is

None of the above

Understanding the Partnership Change

In this problem, Adesh and Bhadresh are partners who decide to admit a new partner, Chandresh. When a new partner is admitted, the existing profit-sharing ratio among the old partners changes because the new partner will also share in the profits.

We are given the old profit-sharing ratio between Adesh and Bhadresh and details about how Chandresh acquires his share. We need to calculate the new profit-sharing ratio among Adesh, Bhadresh, and Chandresh.

Initial Profit Sharing Ratio

Adesh and Bhadresh share profits and losses in the ratio of 3 ∶ 2.

  • Adesh's old share = $\frac{3}{3+2} = \frac{3}{5}$
  • Bhadresh's old share = $\frac{2}{3+2} = \frac{2}{5}$

Chandresh's Admission and Share Acquisition

Chandresh is admitted for a 20% share of the profits.

  • Chandresh's share = $20\%$ of total profits = $\frac{20}{100} = \frac{1}{5}$

This $\frac{1}{5}$ share is acquired in a specific way:

  • Half of Chandresh's share is gifted by Adesh.
  • The remaining half is acquired by Chandresh from Adesh and Bhadresh in equal proportion.

Calculating Share Gifted by Adesh

Half of Chandresh's share is gifted by Adesh.

  • Share gifted by Adesh = $\frac{1}{2} \times$ Chandresh's share = $\frac{1}{2} \times \frac{1}{5} = \frac{1}{10}$

This $\frac{1}{10}$ is Adesh's direct sacrifice.

Calculating Remaining Share Acquired

The remaining share is acquired from Adesh and Bhadresh equally.

  • Remaining share for Chandresh = Chandresh's total share - Share gifted by Adesh = $\frac{1}{5} - \frac{1}{10}$
  • To subtract, find a common denominator (10): $\frac{2}{10} - \frac{1}{10} = \frac{1}{10}$

This remaining $\frac{1}{10}$ share is acquired equally from Adesh and Bhadresh.

  • Share acquired from Adesh = $\frac{1}{2} \times$ Remaining share = $\frac{1}{2} \times \frac{1}{10} = \frac{1}{20}$
  • Share acquired from Bhadresh = $\frac{1}{2} \times$ Remaining share = $\frac{1}{2} \times \frac{1}{10} = \frac{1}{20}$

Calculating Sacrifices by Old Partners

The total sacrifice made by each old partner is the amount of their share given up for the new partner.

  • Total sacrifice by Adesh = Share gifted by Adesh + Share acquired from Adesh = $\frac{1}{10} + \frac{1}{20}$
  • To add, find a common denominator (20): $\frac{2}{20} + \frac{1}{20} = \frac{3}{20}$
  • Total sacrifice by Bhadresh = Share acquired from Bhadresh = $\frac{1}{20}$

Calculating New Profit Sharing Ratio

The new share of each old partner will be their old share minus their sacrifice.

  • Adesh's new share = Adesh's old share - Adesh's sacrifice = $\frac{3}{5} - \frac{3}{20}$
  • To subtract, find a common denominator (20): $\frac{12}{20} - \frac{3}{20} = \frac{9}{20}$
  • Bhadresh's new share = Bhadresh's old share - Bhadresh's sacrifice = $\frac{2}{5} - \frac{1}{20}$
  • To subtract, find a common denominator (20): $\frac{8}{20} - \frac{1}{20} = \frac{7}{20}$

Chandresh's share is already known:

  • Chandresh's share = $\frac{1}{5}$

To express the new ratio, we need a common denominator for all shares (20).

  • Adesh's new share = $\frac{9}{20}$
  • Bhadresh's new share = $\frac{7}{20}$
  • Chandresh's new share = $\frac{1}{5} = \frac{1 \times 4}{5 \times 4} = \frac{4}{20}$

The new profit-sharing ratio is the ratio of these new shares:

Adesh ∶ Bhadresh ∶ Chandresh = $\frac{9}{20} : \frac{7}{20} : \frac{4}{20}$

Multiplying by the common denominator (20) gives the ratio:

9 ∶ 7 ∶ 4

Comparing with Given Options

Let's compare our calculated new profit-sharing ratio (9 ∶ 7 ∶ 4) with the given options:

Option Ratio Matches Calculation?
1 12 ∶ 8 ∶ 5 No
2 9 ∶ 7 ∶ 5 No (Chandresh's share is 4, not 5)
3 12 ∶ 9 ∶ 4 No
4 More than one of the above No (Only one ratio was calculated)
5 None of the above Yes (Our calculated ratio 9 ∶ 7 ∶ 4 is not listed)

The calculated new profit-sharing ratio of 9 ∶ 7 ∶ 4 does not match any of the first three options. Therefore, the correct choice is that none of the provided options is correct.

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Important Questions from Partnership

  1. Kiran, Vimal and Naveen started a business by investing Rs. 1,35,000, Rs. 1,50,000 and  Rs. 1,65,000 respectively. Find the share of each (respectively), out of an annual profit of  Rs. 60,000.

  2. When the incoming partner cannot bring premium for goodwill, then the necessary adjustment for goodwill is done through which one of the following?

  3. A, B, C invest Rs. 20000, Rs. 30000, Rs. 40000 in a business. After one year, A withdrew his money but B and C continued for one more year. If the net profit after 2 years be Rs. 32000, then A’s share in the profit is:

  4. Manoj received Rs. 6000 as his share out of the total profit of Rs. 9000 which he and Ramesh earned at the end of one year. If Manoj invested Rs. 20000 for 6 months, whereas Ramesh invested his amount for the whole year, what was the amount invested by Ramesh?

  5. Three friends A, B, and C invested Rs. 20,000, Rs. 18,000, and Rs. 14,000, respectively in a business. If at the end of the year they got a profit of Rs. 7,800, then the profit share of B would be:

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