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Question

R and S are partners sharing profits in the ratio of 5:3. T joins the firm as a new partner. R gives 1/4th of his share and S gives 1/5th of his share to the new partner.
Find out new profit-sharing ratio.

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Solution

R's old share= 5/8
S's old share= 3/8

T's share= R's sacrifice + S's sacrifice
= [5/8 * 1/4] + [3/8 * 1/5]
= [5/32] + [3/40]
= 37/160

R's new share= 5/8- 5/32
= 15/32
S's new share= 3/8-3/40
= 12/40

New Profit sharing ratio= 75:48:37

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