Question

X&Y were partners 3:2 they admitted P&Q as new partners. X surrender 1/3 of his share in favor of P. And Y surrenders 1/4 of his share in favor of Q. Find new profit sharing ratio.

Answer 1

Given:

• X and Y were partners in a firm, sharing profits and losses in the ratio 3:2.
• P and Q were admitted into the firm.
• X surrendered 1/3rd of his share for P and Y surrendered 1/4th of his share for Q.

To find: The new profit-sharing ratio.

Answer:

• X's old share = 3/5
• Y's old share = 2/5

From X, P gets:

• 1/3 × 3/5 = 3/15

From Y, Q gets:

• 1/4 × 2/5 = 2/20

Calculation of the new profit-sharing ratio:

New ratio = Old ratio - Sacrifice made

For X:

• New share = 3/5 - 3/15 = (9 - 3)/15 = 6/15, or 120/300

For Y:

• New share = 2/5 - 2/20 = (8 - 2)/20 = 6/20, or 90/300

For P:

• New share = 3/15, or 60/300

For Q:

• New share = 2/20, or 30/300

Therefore, the new profit-sharing ratio is 120:90:60:30 or 4:3:2:1.