X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z takes his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio.

Solution

Old Profit-Sharing Ratio amongst Partners (X and Y) is 3 : 2
Z is admitted for 1/4th Share in Profits
Sacrificing Ratio of X and Y is 2 : 1
Z acquires = 2/3 × 1/4 = 2/12 from X
Z acquires = 1/3 × 1/4 = 1/12 from Y

New Ratio = Old Ratio – New Ratio
X‘s new share = 3/5 -2/12  = 36-10/60 = 26/60
Y‘s new share =2/5 -1/12  = 24-5/60 = 19/60
Z’s share = 1/4 = 15/60
New Ratio = 26: 19: 15

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