Question

Apte and Bhate are sharing profits and losses in the ratio 3 : 2, if Kate is admitted at `1/4` share then calculate new profit sharing ratio.

Answer 1

Calculation of new profit sharing ratio

`1 - 1/4=(4- 1)/4 =3/4`

Apte = `3/5 xx 3/4 = 9/20`

Bhate = `2/5 xx 3/4 = 6/20`

Kate = `(1 xx 5)/(4 xx 5) = 5/20`

∴ New profit sharing ratio = 9 : 6 : 5