Question

Ramesh and Suresh are partners in a firm sharing profits in a ratio of 4:3. They admitted Mohan as a new partner. The new profit-sharing ratio of Ramesh, Suresh and Mohan will be 2:3:1. Calculate the gain or sacrifice of old partner.

Answer 1

Sacrificing ratio = old ratio - new ratio

• Ramesh = 4/7 - 2/6 = 10/42
• Suresh = 3/7 - 3/6 = -2/42

NOte - Suresh is gaining only Ramesh is sacrificing