A and B are partners sharing profits and losses in the proportion of  7: 5. They agree to admit C, their manager, into partnership who is to get 1/6th share in the profits. He acquires this share as 1/24th from A and 1/8th from B. Calculate new profit-sharing ratio. 



C admits for 1/6 share of profit
A sacrifice  his share of profit in favour of C = 1/24
B sacrifices his share of profit in favour of C = 1/8

New Ratio = Old Ratio − Sacrificing Ratio
A’s 7/12-1/24 = 13/24
B’s 5/12-1/8 = 7/24

New profit-sharing ratio13/247/241/6

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