Question

X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio.

Answer 1

Old Profit Sharing Ratio amongst Partners (X and Y) is 3 : 2
Z is admitted for `1/4`^th Share in Profits
Sacrificing Ratio of X and Y is 2 : 1

Z acquired = `2/3 xx 1/4 = 2/12`               - (From X)

Z acquired = `1/3 xx 1/4 = 1/12`               - (From Y)

New Ratio = Old Ratio - Sacrificing Ratio

X's new share = `3/5 - 2/12 = [ 36 - 10 ]/60 = 26/60`

Y's new share = `2/5 - 1/12 = [ 24 - 5 ]/60 = 19/60`

Z's share = `1/4 = 15/60`

∴ New Ratio = 26 : 19 : 15