Question

Find New Profit-sharing Ratio:
 A and B are partners sharing profits/losses in the ratio of 3 : 2 . C is admitted for 1/4th share. A and B decide to share equally in future.

Answer 1

Old Ratio = A : B = 3 : 2.

C admits for `1/4` share of profit
Let the combined share of all partners after C’s admission be = 1
Combined share of A and B after C’s admission = 1 - C's share
= 1 - `1/4  = 3/4`

New Ratio of A and B each = Combined share of A and B x `1/2`
= `3/4 xx 1/2 = 3/8` each

New Profit Sharing Ratio = `3/8 : 3/8 : 1/4`

                                         = `[ 3 : 3 : 2]/8` 
                                         =   3 : 3 : 2