Question

4. X, Y and Z are partners in a firm who sharing profit and loss in the ratio of 5:4:3. Y retires
and his share was shared by X and Z equally. Calculate the new profit-sharing ratio of X and Z.
​

Answer 1

Answer:

The new profit sharing ratio of X and Z = 7 : 5

Explanation:

Solution :

★ Old Ratio :

X : Y : Z = 5 : 4 : 3

• X's Share = 5/12
• Y's Share = 4/12
• Z's Share = 3/12

Y retires and his share was shared by X and Z equally.

Y's share will be shared by X and Z equally.

i.e., 1 : 1

• Y's Share = 4/12

• Y's share taken by X =

⇒ 4/12 × 1/2 = 4/24

⇒ 4/24 = 2/12

• Y's share taken by Z =

⇒ 4/12 × 1/2 = 4/24

⇒ 4/24 = 2/12

★ New Profit Sharing Ratio :

New profit sharing ratio = Old share + Share taken from Y

• X's new share =

⇒ 5/12 + 2/12 = 7/12

• Z's new share =

⇒ 3/12 + 2/12 = 5/12

New Profit Sharing Ratio =

• X : Z
• 7/12 : 5/12

⇒ 7 : 5

Therefore, new profit sharing ratio of X and Z = 7 : 5