X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit A into partnership and give him 1/5th share of profits. Find the new profit-sharing ratio.

Solution

 XYZ
OLD RATIO5  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

 XYZA
New profit-sharing ratio =20/5012/508/501/5
=2012810
=10645

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