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A and B are partners sharing profits and losses in the ratio 3:2 . They admit C into partnership with a 1/6th share in future profits. Calculate the new profit sharing ratio?
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A and B are partners sharing profits and losses in the ratio 3:2 . The...
Calculation of New Profit Sharing Ratio


Initially, the profit sharing ratio between A and B is 3:2.

Let the total profit be x.


  • A's share = 3/5 * x = 3x/5

  • B's share = 2/5 * x = 2x/5



Admission of C


C is admitted into the partnership with a 1/6th share in future profits.

Let C's share be y.


  • y = 1/6 * (x - 3x/5 - 2x/5) = x/15



New Profit Sharing Ratio


The new profit sharing ratio will be calculated by adding the new share of C to the existing shares of A and B and then calculating the ratio.


  • A's share = 3x/5 + x/15 = 14x/15

  • B's share = 2x/5 + x/15 = 11x/15

  • C's share = x/15



The new profit sharing ratio will be:


  • A:B:C = 14x/15 : 11x/15 : x/15

  • A:B:C = 14:11:1

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A and B are partners sharing profits and losses in the ratio 3:2 . They admit C into partnership with a 1/6th share in future profits. Calculate the new profit sharing ratio?
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