Question

A, B, C and D are in partnership sharing profits and losses in the ratio 36:24:20:20 respectively. E joins the partnership for 20% share and A, B, C and DS in future would share profits among themselves as 3/10:4/10: 2/10:1/10. Calculate new profitsharing ratio after E’s admission.

Answer 1

Let the combined share of all partners profit after E's a admission =1

Combined share of A,B,C and D after E's admission = 1- E's share