Question

Find New Profit-sharing Ratio:
A and B are equal partners. They admit C and D as partners with 1/5th and 1/6th share respectively.

Answer 1

Old Ratio = A : B = 1 : 1

C admits for `1/5` share

D admits for `1/6` share

Let combined share of all partner after C and D’s admission be = 1
Combined share of profit of A and B after C and D’s admission 
= 1 - C's Share - D's Share
= 1 - `1/5 - 1/6 = 19/30`

New Ratio = Old Ratio × Combined share of A and B
A's = `1/2 xx 19/30 = 19/60`

B's = `1/2 xx 19/30 = 19/60`

New Profit Sharing Ratio = A : B : C : D
                                        = `19/60 : 19/60 : 1/5 : 1/6`

                                        = `[19 : 19 : 12 : 10]/60`

                                        = 19 : 19 : 12 : 10