Solution
X | Y | Z | |
OLD RATIO | 5 | 3 | 2 |
A is admitted for 1/5 share of profit
Let the combined share of profit for all partners after A’s admission be = 1
Combined share of X, Y and Z after A’s admission = 1 − A’s share = 1-1/5 = 4/5
New Ratio = Old Ratio × Combined share of X, Y and Z
X = 5/10×4/5 = 20/50
Y = 3/10×4/5 = 12/50 question 80
Z = 2/10×4/5 = 8/50
X | Y | Z | A | |
New profit-sharing ratio = | 20/50 | 12/50 | 8/50 | 1/5 |
= | 20 | 12 | 8 | 10 |
= | 10 | 6 | 4 | 5 |