Question

Ramesh and Suresh are partners sharing profits and losses in the ratio of 3:2. They admit Satish into the partnership with 1/5th share. Calculate the new profit sharing ratio of all the partners.

Answer 1

Total share of the firm = 1

Satish’s share \(\frac{1}{5}\)

Remaining Share = 1- \(\frac{1}{5}\) = \(\frac{4}{5}\)

New profit sharing ratio of the partners

Ramesh: \(\frac{4}{5}\) x \(\frac{3}{5}\) = \(\frac{12}{25}\)

Suresh: \(\frac{4}{5}\) x \(\frac{2}{5}\) = \(\frac{8}{25}\)

Satish: \(\frac{1}{5}\) x \(\frac{5}{5}\) = \(\frac{5}{25}\)

Ramesh : Suresh : Satish is 12:8:5