Question

X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio.

Answer 1

Answer:

$X's old share= 3/5</p><p></p><p>Y's old share= 2/5</p><p></p><p></p><p>Z is admitted for 1/4th share</p><p></p><p>Sacrificing ratio is 2:1</p><p></p><p></p><p>Z acquired 2/3 * 1/4 = 2/12 from X</p><p></p><p>Z acquired 1/3 * 1/4 = 1/12 from Y</p><p></p><p></p><p>Hence,</p><p></p><p>X's new ratio= 3/5-2/12</p><p></p><p>= 26/60</p><p></p><p>Y's new ratio= 2/5-1/12</p><p></p><p>= 19/60</p><p></p><p>Z's share= 15/60</p><p></p><p></p><p>New Profit sharing ratio= 26:19:15$

X's old share= 3/5

Y's old share= 2/5

Z is admitted for 1/4th share

Sacrificing ratio is 2:1

Z acquired 2/3 * 1/4 = 2/12 from X

Z acquired 1/3 * 1/4 = 1/12 from Y

Hence,

X's new ratio= 3/5-2/12

= 26/60

Y's new ratio= 2/5-1/12

= 19/60

Z's share= 15/60

New Profit sharing ratio= 26:19:15

Answer 2

New-Profit sharing ratio is calculated below.

Explanation:

Old ratio between the partners X and Y is given as 3:2.

Profit share z would get after his admission = 1/4th of the profit

Z acquires shares from X and Y in ratio of 2:1.

Calculating new share:

Z acquired from X

$=\frac{2}{3} \times \frac{1}{4}=\frac{2}{12}$

Z acquired from Y

$=\frac{1}{3} \times \frac{1}{4}=\frac{1}{12}$

This amount will be deducted from X and Y’s share.

Calculating New Profit Share:

New Ratio = Old ratio - Sacrificing ratio

X’s share

$=\frac{3}{5}-\frac{2}{12}=\frac{36}{60}-\frac{10}{60}=\frac{26}{60}$

Y’s share

$=\frac{2}{5}-\frac{1}{12}=\frac{24}{60}-\frac{5}{60}=\frac{19}{60}$

Z’ share

$=\frac{1}{4} \times \frac{15}{15}=\frac{15}{60}$

= 1/4

X, Y and Z's new profit sharing ratio is 26 : 19 : 15

So, new profit-sharing ratio becomes = 26:19: 15