Question

A and B are partners sharing profits and losses in the ratio of 7:5. They agree to admit Cinto partnership who is
to get 1/6th share of profits. C acquires the share as 1/24th from A and 1/8th from B. Calculate the new
profit-sharing ratio.
12.7.4]​

Answer 1

Answer:

A's old share= 7/12

B's old share= 5/12

C is admitted for 1/6th share

A's new ratio= 7/12- 1/24

= 13/24

B's new ratio= 5/12- 1/8

= 7/24

New Ratio of the firm= 13:7:4