X ,Y and Z are partners sharing profits in the ratio of 14:9:7. They admit W as new partners for 1/5th share in profits. X and Y decided to share equally in future and Z would retain his original share. Calculate the new profit sharing ratio.
Answers
Answer:
Let total share if profit of firm is 1
W share = 1/5
Zshare 7/30
Total share ofboth partner = 1/5+7/30= 13/30
Remaining share = 1-13/30= 17/30
X and Y decides equal in future
X share of profit = 17/30*1/2= 17/60
Y share of profit = 17/30*1/2= 17/60
New ratio
17/60:17/60:7/30:1/5
17:17:14:12
Explanation:
★ Old Ratio :
X : Y : Z = 14 : 9 : 7
- X's Share = 14/30
- Y's Share = 9/30
- Z's Share = 7/30
They admit W as new partners for 1/5th share in profits.
- W's Share = 1/5
Z would retain his original Share =
- Z's Share = 7/30
Let,
Total Profit = 1
So,
Remaining Share :
Z's Share = 7/30
1 - 7/30 = 23/30
W's Share = 1/5
23/30 - 1/5 = 17/30
Remaining Share = 17/30
X and Y decided to share equally in future.
★ New Profit Sharinging Ratio :
• X's new share =
⇒ 17/30 × 1/2 = 17/60
• Y's new share =
⇒ 17/30 × 1/2 = 17/60
• Z's new share =
⇒ 7/30 = 14/60
• W's Share =
⇒ 1/5 = 12/60
New Profit Sharinging Ratio :
X : Y : Z : W = 17/60 : 17/60 : 14/60 : 12/60
⇒ 17 : 17 : 14 : 12
Therefore, the new profit sharing ratio of X,Y,Z and W = 17 : 17 : 14 : 12