Question

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

Answer 1

(i) Calculation of new ratio:

Kabir's old share= 7/10

Farid's old share= 3/10

Jyoti acquires 2/10 from Kabir and 1/10 from Farid

Therefore, Jyoti's share= 2/10 + 1/10

= 3/10

Kabir's new ratio= 7/10- 2/10

= 5/10

Farid's new ratio= 3/10- 1/10

= 2/10

New Profit sharing ratio= 5:2:3

(ii) Calculation of sacrificing ratio:

Kabir's sacrifice= 2/10

Farid's sacrifice= 1/10

Hence, sacrificing ratio= 2:1