Question

Mohan and Rohan are sharing profits and losses in the ratio of 2:3. They admitted Chandran for 1/4th share in future profit. Calculate new profit sharing ratio.​

Answer 1

Given:

• Mohan and Rohan are partners in a firm, sharing profits and losses in the ratio 2:3.
• Chandran was admitted into the firm for 1/4th share in profits.

To find: The new profit-sharing ratio.

Answer:

• Mohan's old share = 2/5
• Rohan's old share = 3/5

• Chandran's share = 1/4

Let the total profit be assumed as 1.

Remaining profit [for Mohan and Rohan] = 1 - 1/4 = 3/4

The remaining profit will be distributed among the old partners in their old profit-sharing ratio.

Calculation of the new profit-sharing ratio:

New share = Old share × Remaining profit

For Mohan:

• New share = 2/5 × 3/4 = 6/20

For Rohan:

• New share = 3/5 × 3/4 = 9/20

For Chandran:

• New share = 1/4, or 5/20

Therefore, the new profit-sharing ratio is 6:9:5.