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Question

Rao and Swami are partners in a firm sharing profits and losses in 3:2 ratio. They admit Ravi as a new partner for 1/8 share in the profits. The new profit sharing ratio between Rao and Swami is 4:3. Calculate new profit sharing ratio and sacrificing ratio?


Solution

Ravi admits for share of profit in the new firm.

Let the New Firm Profit = 1

Combined share of Rao and Swami in the new firm

= 1 − Ravi’s share of profit

= 1 −

New Ratio = Combined Share of Rao and Swami × Proportion of Rao and Swami in the combined share

4:3:1

Sacrificing Ratio = Old Ratio − New Ratio


Accountancy
Partnership Accounts
Standard XII

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