Question

A and M are partners sharing profits and losses in the ratio of 3:2. G is admitted for 1/4th share. Therefore, N enters the partnership for 20 paise in a rupee. Compute new profit sharing ratio.​

Answer 1

Answer:

9:6:5:5

Explanation:

Let the combined share of firm be 1,so after G's admission profit share left will be 1-1/4=3/4.A's share=3/4*3/5=9/20

M's share=3/4*2/5=6/20

Share for A,M and G=9:6:5

N's admission takes place for a share of 20 p in a rupee i.e 20/100=1/5

Share left for A,M and G=1-1/5=4/5

A's share=4/5*9/20=9/25

M's share=4/5*6/20=6/25

G's share=4/5*5/20=5/25

N's share=1/5*5/5=5/25

Thus new profit sharing will be 9:6:5:5