Question

$A$ and $B$ are partners sharing profits and losses in the proportion of $7:5$. They agree to admit $C$, their manager, into partnership who is to get $1/6^{th}$ share in the profit. He acquires this share as $1/{24}^{th}$ from $A$ and $1/8^{ht}$ from $B$. Calculate new profit-sharing ratio.

Answer 1

A's old share= 7/12

B's old share= 5/12

C is admitted for 1/6th share

A's new ratio= 7/12- 1/24

= 13/24

B's new ratio= 5/12- 1/8

= 7/24

New Ratio of the firm= 13:7:4