Question

R & S are in partnership sharing profit and losses at the ratio $3:2$. They take T as a new partner. Calculate the new profit sharing ratio, if T simply gets $1/10$th share of profit.

• A. $27:18:5$
• B. $28:17:5$
• C. $5:4:1$
• D. $19:19:12$

Answer 1

The correct option is A $27:18:5$

Old ratio (R and S) = 3 : 2

T is admitted for 1/10th share

Let combined share of all partners after T's admission = 1

Combined share of R and S in the new firm = 1 - (1/10) = 9/10

New ratio = Old ratio * Combined share of R and S

R's new ratio = (3/5) * (9/10) = 27/50

S's new ratio = (2/5) * (9/10) = 18/50

T's share = 1/10 or 5/50

New profit sharing ratio (R : S : T) = 27 : 18 : 5