Question

J & K are partners in a firm sharing profits in the ratio of 2 : 3. L joins the firm. J surrenders `1/5`th of his share and K, `1/3` of his share in favour of L. Find the new profit-sharing ratio.

Answer 1

J : K = 2 : 3

So their original shares are:

J = `2/5`

K= `3/5`

1. J surrenders `1/5` of his share

J’s sacrifice = `1/5 xx 2/5 = 2/25`

J's new share:

`2/5 - 2/25 = 8/25`

2. K surrenders `1/3` of his share

K’s sacrifice = `1/3 xx 3/5 = 1/5`

K's new share:

`3/5 - 1/5 = 2/5`

3. L's share

`L = 2/25 + 1/5 = 2/25 + 5/25 = 7/25`

Thus:

`J : K : L = 8/25 : 10/25 : 7/25`

New Profit-Sharing Ratio

J : K : L = 8 : 10 : 7