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