Question

X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership. X gives 1/3rd of his share while Y gives 1/10th from his share to Z. Calculate new profit-sharing ratio and sacrificing ratio.

Answer 1

Old Ratio of X and Y is 3 : 2.

X's Sacrifice = `1/3 xx 3/5 = 3/15`

Y's Sacrifice = `1/10`

Sacrificing Ratio = `3/15 : 1/10` or 2 : 1

New Ratio = Old Share − Share Sacrificed

X's new share = `3/5 - 3/15 = 6/15`

Y's new share = `2/5 - 1/10 = 3/10`

Z's Share = `3/15 + 1/10 = 9/30`

New Ratio = `6/15 : 3/10 : 9/30` = 4 : 3 : 3.