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A, B and C were partners in a firm sharing profits in the ratio of  3 : 2 : 1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit-sharing ratio of A, B, C and D. 

Solution

A, B and C shares profits in the ratio of  3 : 2 : 1.
D’s share = 1/8 (D acquired 1/16 from B and C each)
A’s share = 3/6 (retains original share)

B’s new share = 2/6-1/16 = 13/48          
C’s new share = 1/6-1/16 = 5/48
New ratio of  ABCD = 3/6: 13/48: 5/48: 1/8 or 24: 13: 5: 6

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