Question

Find New Profit-sharing Ratio:
X, Y and Z are partners in the ratio of 3 : 2 : 1. W joins the firm as a new partner for 1/6th share in profits. Z would retain his original share

Answer 1

Old Ratio = X : Y : Z
                = 3 : 2 : 1
W admits for `1/6` share of profit
Let combined share of all partner after W’s admission be = 1 Combined share X and Y in the new firm = 1 - Z's share - W's share
= 1 - `1/6 - 1/6 = 4/6`

New Ratio = Old Ratio × Combined share of X and Y
X's = `3/ 5 xx 4/6 = 12/30`

Y's = `2/5 xx 4/6 = 8/30`

New Profit Sharing Ratio = X : Y : Z : W
                                        = `12/30 : 8/30 : 1/6 : 1/6`

                                        = `[ 12 : 8 : 5 : 5 ]/30`

                                        = 12 : 8 : 5 : 5.