Q.3.X and Y Are Partners Sharing Profits in 5:3 Ratio Admitted Z for 1/10 Share Which He Acquired Equally for X and Y. Calculate New Profit Sharing Ratio?

Q.3.X and Y Are Partners Sharing Profits in 5:3 Ratio Admitted Z for 1/10 Share Which He Acquired Equally for X and Y. Calculate New Profit Sharing Ratio?

SOLUTION

X : Y Old Ratio = 5:3

Z admits for 1/10 share in the new firm.

X and Y each sacrifice

New Ratio = Old Ratio – Sacrificing Ratio

  

New Ratio = A:B:C

           = 23:13:4

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