Question

Anita and Tina are partners sharing profits as 9 : 5. They agree to admit Chetan their manager into partnership, who is to get 1/8 share in the profits. He acquires this share as 1/12 from Anita and 1/24 from Tina. Calculate new profit sharing ratio.

Answer 1

Given old ratio of Anita : Tina = 9 : 5.

Step 1: Convert their shares into fractions

Total parts = 9 + 5 = 14

Anita’s old share = `9/14`

Tina’s old share = `5/14`

Step 2: Calculate their new shares

Chetan gets `1/8` of the profit:

From Anita = `1/12`

From Tina = `1/24`

So:

Anita’s new share

`9/14 - 1/12 = (54 - 7)/84 = 47/84`

Tina’s new share

`5/14 - 1/24 = (60 - 7)/168 = 53/168`

Chetan’s share

`1/8 = 21/168`

Convert Anita’s share:

`47/84 = 94/168`

Therefore, the new ratio is:

94 : 53 : 21