Question

P and Q share profits in 3 : 2. They admit R and S with `1/4  "and"  1/5` share respectively. Calculate the new ratios of partners.

Answer 1

Let total profit of the firm be 1

Shares of R and S is `1/4  "and"  1/5` respectively

Balance remaining = `1 - (1/4 + 1/5)`

= `(20 - (5 + 4))/20`

= `11/20`

`11/20` is to be shared 3 : 2 by P and Q

Hence,

P’s share = `11/20 xx 3/5`

= `33/100`

Q’s share = `11/20 xx 2/5`

= `22/100`

New Profit sharing Ratio of P, Q, R and S:

P = `33/100`

Q = `22/100`

R = `1/4`

= `(1 xx 25)/(4 xx 25)`

= `25/100`

S = `1/5`

= `(1 xx 20)/(5 xx 20)`

= `20/100`

New Profit sharing Ratio of P, Q, R and S = `33/100 : 22/100 : 25/100 : 20/100` or 33 : 22 : 25 : 20