Question

A and B are partners in a firm sharing profit and losses in the ratio of 5:3. A surrenders 1/5th
share, whereas B surrenders 1/3 of his share in favour of C. a new partner Calculate the new profit
sharing ratio.​

Answer 1

Answer:

A profit share =5/8, A surrender in favor of C =1/1 1/5*5/8=1/8

so, A new share 5/8-1/8=4/8

B profit share =3/8, B surrender in favor of C =1/3*3/8=1/8

so, B new share=3/8-1/8=2/8

C profit share 4/8+2/8=6/8

hence new profit sharing ratio of A, B, C =4:2:6