Question

P and Q are partners in a firm sharing profits in the ratio 7:3. R is admitted into the partnership firm for 2/5th share of profit which he takes from P and Q in the ratio 2:1. The new ratio will be:​

Answer 1

Answer:

1 answer

They admit R , a new partner who acquired 1/5th of his share from P and 4/25th share from Q . Calculate New Profit Sharing Ratio and Sacrificing Ratio.

Top answer

Admission of a partner leads to the reconstitution of partnership. As a result of which there is a change in the profit sharing ratio among the partners. ...  More

Answer 2

Concept:

Sacrificing Ratio-

• The difference between the previous ratio and the new ratio of the original partners is the sacrifice ratio.
• To put it another way, the term "sacrificing ratio" simply refers to the ratio in which the previous partners in a partnership business give up their portion of the profits in favour of the new partner.
• Ratio of Sacrifice = Old Ratio – New Ratio
• The computation of the sacrifice ratio is crucial because the new partner must make up for the old partners' loss of their profit-sharing interest. The new partner rewards the previous partners by paying them according to their share of sacrifice.

Given:

old ratio = 7:3

sacrificing ratio = 2:1

Find:

New ratio

Solution:

• Sacrificing share of P = (2/5) x (2/3)

        Sacrificing share of P = 4/15

• Sacrificing share of Q = (2/5) x (1/3)

        Sacrificing share of Q = 2/15

• New Share = Old share - Sacrificing share

                        P = 7/10 - 4/15

                         P = 13/30

                         Q = 3/10 - 2/15

                         Q = 5/30

                         R = 12/30

Hence, the new ratio between P,Q and R is 13:5:12.

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