Question

A and B are partner in business. The profit sharing ratio is 1/5 and 4/5 respectively. A
new partner C is admitted and 1/3 shares of profit is given. Find the new profit sharing
ratio.​

Answer 1

A's old share= 3/5

B's old share= 2/5

C is admitted for 1/5th share in the profit.

A's sacrifice= 1/5 * 1/5

= 1/25

B's sacrifice= 1/5 * 4/5

= 4/25

New profit sharing ratio of the partners:

A's new share= 3/5-1/25

= 14/25

B's new share= 2/5-4/25

= 6/25

C's share= 1/5

Ratio= 14:6:5

Answer 2

Step-by-step explanation:

A:B = 1:4

A = 1/5

B = 4/5

C is admitted and 1/3 shares of profit is given

let,

share profit = 1

1-1/3 = 2/3

A's new Share = 2/3 × 1/5

2/15

B's New Share = 2/3 × 4/5

8/15

C's share =

1/3 = 5/15

New profit Sharing ratio :

A:B:C = 2/15 : 8/15 : 5/15

A:B:C = 2:8:5