Question

A, B and C were partners in a firm sharing profits in 3 : 3 : 2 ratio. They admitted D as a new partner for 4/7 profit. D acquired his share 2/7 from A. 1/7 from B and 1/7 from C. Calculate new profit sharing ratio?

Answer 1

Old Ratio = A:B:C 3:3:2

D admitted for \(\frac{4}{7}\) share of profit in new firm. 

D’s share = A’s sacrifice + B’s sacrifice + C’s sacrifice

New Ratio = Old Ratio – Sacrificing Ratio