Kabir and Farid are partners in a firm sharing profits and losses in the ratio of 7 : 3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share in favour of Jyoti; the new partner. Calculate new profit-sharing ratio and sacrificing ratio.

Solution

Calculation of New Ratio
Old Ratio of Kabir and Farid 7 : 3

Kabir sacrifices his share of profit in favour of Jyoti = 210
Farid sacrifices his share of profit in favour of Jyoti = 110
Jyoti’s Share = 210+110 = 310

New Ratio = Old Share − Share Sacrificed
Kabir’s New Share = 710-210 = 510
Farid’s New Share = 310-110 = 210
New Profit-Sharing Ratio = 5 : 2 : 3

Calculation of Sacrificing Ratio
Since, Kabir and Farid are sacrificing 2/10 share and 1/10 share respectively, therefore the sacrificing ratio becomes 2 : 1.

Leave a Reply