X and Y are two partners sharing profits in the ratio of 3:1. Z is admitted for 1/8th share of profits. Calculate the new profit-sharing ratio of X, Y, and Z.
Answers
Given data:
- X and Y are partners in a firm, sharing profits and losses in the ratio 3:1.
- Z is admitted into the firm for 1/8th of the shares.
To find: The new profit-sharing ratio.
Answer:
- X's old share = 3/4
- Y's old share = 1/4
- Z's share = 1/8
Let the total profit be assumed as 1.
Remaining profit [For X and Y] = 1 - 1/8 = 7/8
The remaining profit will be distributed among X and Y in their old profit-sharing ratio.
Calculation of the new profit-sharing ratio:
New ratio = Remaining profit × Old ratio
For X:
- 7/8 × 3/4 = 21/32
For Y:
- 7/8 × 1/4 = 7/32
For Z:
- 1/8, or 4/32
Therefore, the new profit-sharing ratio is 21:7:4.
Given : X and Y are two partners in a firm, sharing profit in the ratio of 3 : 1. Z is admitted for 1/8th share of profit.
To find : New profit sharing ratio of X, Y and Z.
Solution :
We are given that X and Y were sharing profit in the ratio 3 : 1.
Let's assume that the total profit after the joining of Z in the firm be 1
Therefore,
New profit sharing ratio of X and Y = 1 - share of Z
New profit sharing ratio of X and Y = 1 - 1/8
New profit sharing ratio of X and Y = 7/8
Now,
- New ratio = Old ratio × Combined ratio of X and Y
So, the new profit sharing ratio of X, Y and Z are :-
Ratio of X => 3/4 × 7/8 = 21/32
Ratio of Y => 1/4 × 7/8 = 7/32
Ratio of Z => 1/8
Therefore, the required answer is,
=> 21/32 : 7/32 : 1/8
=> 21/32 : 7/32 : 4/32
=> 21 : 7 : 4