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 R & S agree to sacrifice $1/10$th share to T in the ratio of $2:3$.

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

Answer 1

Answer: (B)

$28:17:5$

Old ratio (R and S) = 3 : 2

T is admitted for 1/10th share of profit

R's sacrifice in favour of T = (1/10) * (2/5) =2/50

S's sacrifice in favour of T = (1/10) * (3/5) = 3/50

New profit sharing ratio = Old ratio - Sacrificing ratio

R's new share = (3/5) - (2/50) = 28/50

S's new share = (2/5) - (3/50) = 17/50

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

Therefore, new profit sharing ratio of R : S : T = 28 : 17 : 5