Question

X and Y share profits in the ratio of 3:2. Z wad admitted as a partner who sets 1/5 share. New profits sharing ratio, if Z acquires, if Z acquires 3/20 from X and 1/20 from Y would be:

Answer 1

Explanation:

Old ratio ( X: Y) = 3 : 2

Z admitted for 1/5 share of profit

X sacrifices in favour of Z = 1/5

New ratio = Old ratio - sacrificing ratio

X's new share = (3/5) - (1/5)

= 2/5

Y's new share = (2/5) - 0

= 2/5

Z's share = 1/5

Therefore, new profit sharing ratio among X, Y and Z is 2 : 2 : 1

Answer 2

Explanation:

Solution :

★ Old Ratio =

X : Y = 3 : 2

• X's Share = $\dfrac{3}{5}$

• Y's Share = $\dfrac{2}{5}$

Z was admitted as a partner who sets 1 /5 share.

• Z acquires 3 /20 from X
• Z acquires 1 / 20 from Y

★ New profit Sharing Ratio :

• X's New Share =

$\longrightarrow\: \dfrac{3}{5} \: - \: \dfrac{3}{20} \: = \: \dfrac{(12 \: - \: 3)}{20}$

$\longrightarrow\: \dfrac{9}{20}$

• Y's New Share =

$\longrightarrow\:\dfrac{2}{5} \: - \: \dfrac{1}{20} \: = \: \dfrac{(8 \: - \: 1)}{20}$

$\longrightarrow\: \dfrac{7}{20}$

• Z's Share =

$\longrightarrow\: \dfrac{1}{5} \: = \: \dfrac{4}{20}$

New profit Sharing Ratio :

• X : Y : Z

$\longrightarrow \: \dfrac{9}{20} : \dfrac{7}{20} : \dfrac{4}{20}$

$\longrightarrow$ 9 : 7 : 4

∴ New Profit Sharing Ratio =

X : Y : Z = 9 : 7 : 4