Question

Raja and Ravi are partners, sharing profits in the ratio of 3 : 2. They admit Ram for 1/4 share of the profit. He takes 1/20 share from Raja and 4/20 from Ravi. Calculate the new profit sharing ratio and sacrificing ratio.

Answer 1

New Profit Sharing Ratio = Old Ratio – Sacrificing Ratio

Raja = `3/5 - 1/20 = (12 - 1)/20 = 11/20`

Ravi = `2/5 - 4/20 = (8 - 4)/20 = 4/20`

Ram = `1/20 + 4/20 = 5/20`

New Profit sharing Ratio = 11 : 4 : 5

Sacrificing Ratio = `1/20 : 4/20` = 1 : 4