Question

X and Y are partners sharing profits in 5:3 ratio admitted Z for 1/10 share which he acquired equally for X and Y. Calculate new profit sharing ratio?​

Answer 1

Answer:

The new profit-sharing ratio is 21 : 11 : 4.

Explanation:

Given data:

X and Y are partners sharing profits in the ratio of 5:3.

They admitted Z for a 1/10 of share which he acquired from X and Y.

To find: New profit-sharing ratio

Old profit share of X = 5/8

Old profit share of Y = 3/8

Now, after Z joined

Z’s share of profit = 1/10

New profit share of X = 5/8 – 1/10  

    = (50 – 8) / (8 * 10)

    = 42 / 80

New profit share of Y = 3/8 – 1/10

    = (30 - 8) / (8 * 10)

    = 22 / 80

∴ The new profit sharing ratio between X, Y & Z

= 42/80 : 22/80 : 1/10

= 42 : 22 : 8 …. [multiplying by 10 throughout]

= 21 : 11 : 4 ….. [dividing by 2 throughout]