Question

For the following particulars, calculate new profit-sharing of the partners.
(a) Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of $5:5:4$. Mohan retired and his share was divided equally between Shiv and Hari.
(b) $P,Q$ and $R$ were partners sharing profit in the ratio of $5:4:1$. $P$ retires from the firm.

Answer 1

(a) Old ratio (Shiv, Mohan and Hari) = 5:5:4

Mohan's profit share = 5/14

His share is divided between Shiv and Hari equally i.e in the ratio of 1:1

Share of Mohan taken by Shiv = 5/14 X 1/2 = 5/28

Share of Mohan taken by Hari = 5/14 X 1/2 = 5/28

New profit share = Old profit share + Share taken from Mohan

Shiv's new share = 5/14 + 5/28 = 10/28 + 5/28 = 15/28

Hari;s new share = 4/14 + 5/28 = 8/28 + 5/28 = 13/28

New profit share (Shiv and Hari) = 15 : 13

(b) Old ratio (P, Q and R) = 5 : 4 : 1

P's profit share = 5/10

Since, no information is given on how Q and R are acquiring P's profit share after his retirement, therefore the new profit sharing ratio between Q and R is calculated just by crossing out P's share. That is, the new ratio becomes 4 : 1

New profit ratio (Q and R) = 4 : 1