Question

Anil and Sunil are partners sharing profits in the ratio of 4 : 1. They admit Vijay into partnership with 1/3 share in profits which he acquires wholly from Anil. Calculate the new profit sharing ratio.

Answer 1

Old ratio of Anil : Sunil = 4 : 1.

Total parts = 5, so:

Anil’s old share = `4/5`

Sunil’s old share = `1/5`

Vijay gets `1/3` share, entirely from Anil.

New shares

Anil:

`4/5 - 1/3 = (12 - 5)/15 = 7/15`

Sunil: `1/5`

Vijay: `1/3`

Now convert to a common denominator:

`7/15 : 1/5 : 1/3 = 7/15 : 3/15 : 5/15`

So the new profit-sharing ratio is:

Anil : Sunil : Vijay = 7 : 3 : 5