Mala and Anitha are partners, sharing profits and losses in the ratio

1.	Mala and Anitha are partners, sharing profits and losses in the ratio of 3 : 2. Mercy is admitted into the partnership with 1/5 share in the profits. Calculate new profit sharing ratio and sacrificing ratio.
Answer» Calculate New Profit Sharing Ratio = 1 – 1/5 = 4/5 Mala = 3/5 x 4/5 = 12/25 Anitha = 2/5 x 4/5 = 8/25 Mercy = 1/5 x 5 = 5/25 New Profit Sharing Ratio = 12 : 8 : 5 Sacrificing Ratio = Old share – New share Mala Mala = 3/5 - 12/25 = (15 - 12)/25 = 3/5 Anitha = 2/5 - 8/25 = 2/25 Scrificing Ratio = 3 : 2

Mala and Anitha are partners, sharing profits and losses in the ratio of 3 : 2. Mercy is admitted into the partnership with 1/5 share in the profits. Calculate new profit sharing ratio and sacrificing ratio.

Answer»

Calculate New Profit Sharing Ratio = 1 – 1/5 = 4/5

Mala = 3/5 x 4/5 = 12/25

Anitha = 2/5 x 4/5 = 8/25

Mercy = 1/5 x 5 = 5/25

New Profit Sharing Ratio = 12 : 8 : 5

Sacrificing Ratio = Old share – New share Mala

Mala = 3/5 - 12/25 = (15 - 12)/25 = 3/5

Anitha = 2/5 - 8/25 = 2/25

Scrificing Ratio = 3 : 2