Question

R and S are partners in a firm sharing profits in the ratio of 7 : 5. M is admitted on 1/6 share which he takes 1/24 from the R and 1/8 from S. What is the new profit sharing ratio?

• A. 13:7:4
• B. 7:5:4
• C. 10:7:3
• D. 9:7:4

Answer 1

The correct option is A 13:7:4

Existing partner's new share shall be calculated using the following formula when the new partner takes a particular share from their profit sharing ratio.

New share= Old share-Share surrendered.

Therefore, in the given case:

M's share (given)= $1$/$6$

R's new share= $7$/$12$-$1$/$24$=$13$/$24$

S's new share=$5$/$12$-$1$/$8$=$7$/$24$

M's share to be written to fit the equation= $1$/$6$= $4$/$24$

R:S:M new ratio = 13:7:4