Question

Kabir and Farid are partners in a firm sharing profits and losses in the ratio of 7 : 3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share in favour of Jyoti; the new partner. Calculate new profit-sharing ratio and sacrificing ratio.

Answer 1

Calculation of New Ratio

Old Ratio of Kabir and Farid 7 : 3

$\mathrm{Kabir}\mathrm{sacrifices}\mathrm{his}\mathrm{share}\mathrm{of}\mathrm{profit}\mathrm{in}\mathrm{favour}\mathrm{of}\mathrm{Jyoti}=\frac{2}{10}$

$\mathrm{Farid}\mathrm{sacrifices}\mathrm{his}\mathrm{share}\mathrm{of}\mathrm{profit}\mathrm{in}\mathrm{favour}\mathrm{of}\mathrm{Jyoti}=\frac{1}{10}$

$\mathrm{Jyoti}\text{'}\mathrm{s}\mathrm{Share}=\frac{2}{10}+\frac{1}{10}=\frac{3}{10}$

New Ratio = Old Share − Share Sacrificed

$$\begin{gathered} \mathrm{Kabir}\text{'}\mathrm{s}\mathrm{New}\mathrm{Share}=\frac{7}{10}-\frac{2}{10}=\frac{5}{10} \\ \mathrm{Farid}\text{'}\mathrm{s}\mathrm{New}\mathrm{Share}=\frac{3}{10}-\frac{1}{10}=\frac{2}{10} \end{gathered}$$

New Profit Sharing Ratio = 5 : 2 : 3

Calculation of Sacrificing Ratio

Since, Kabir and Farid are sacrificing 2/10 share and 1/10 share respectively, therefore the sacrificing ratio becomes 2 : 1.