Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio.

Solution

Answer:

	X	Y
New Profit-Sharing ratio	20/50	12/50

Ashok admits for 3/7 share of profit
Ravi sacrifices in favour of Ashok = 2/7
Mukesh sacrifices in favour of Ashok = 1/7

New Ratio = Old Ratio − Sacrificing Ratio
Ravi = 7/10-2/7 = 29/70
Mukesh = 3/10-1/7 = 11/70