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 $\frac{1}{8}$ share in the profits. The new profit sharing ratio between Rao and Swami is 4 : 3. Calculate new profit sharing ratio and sacrificing ratio.

Answer 1

Ravi' share = $\frac{1}{8}$

Combine share of Rao and Swami = $1-\frac{1}{8}=\frac{7}{8}$

New ratio between Rao and Swami = 4 : 3

Rao's new share = $\frac{7}{8}\times \frac{4}{7}=\frac{28}{56}$

Swami's new share = $\frac{7}{8}\times \frac{3}{7}=\frac{21}{56}$

New profit sharing ratio of Rao : Swami : Ravi

$\frac{28}{56}:\frac{21}{56}:\frac{1}{8}$

or $\frac{28:21:7}{56}$

or 28 : 21 : 7

or 4 : 3 : 1

Rao's Sacrifice= $\frac{3}{5}-\frac{4}{8}=\frac{24-20}{40}=\frac{4}{40}$

Swami's Sacrifice= $\frac{2}{5}-\frac{3}{8}=\frac{16-15}{40}=\frac{1}{40}$

Sacrificing ratio of Rao and Swami = 4 : 1