Verified answer

Explanation

Ram and Shyam old profit sharing ratio is 1:1

where

Krishna admitted as a new partner share 1/5 th of profit

then Remaining profit = 1-1/5

= 4/5

is shared between Ram and Shyam

New profit sharing

Ram =1/2×4/5

=4/10

Shyam =1/2×4/5

=4/10

therefore

Ram:Shyam:Krishna = 4/10 : 4/10 : 1/5

=2/5 : 2/5 : 1/5

= 2:2:1

Answer

NEW PROFIT SHARING RATIO is 2 : 2 : 1

Explanation:

Solution :

Ram and Shyam are partners sharing Profit and Loss equally.

★ Old ratio :

Ram : Shyam = 1 : 1

• Ram's share = 1/2
• Shyam's share = 1/2

They have admitted Krishna as partner by giving him 1/5th share in future profits.

• Krishna's share = 1/5

Let,

Total profit of all partners = 1

• Krishna's share = 1/5

So,

Remaining share =

1 - 1/5 = 4/5

★ New profit sharing ratio :

• Ram's new share =

1/2 × 4/5 = 4/10

• Shyam's share =

1/2 × 4/5 = 4/10

• Krishna's share =

1/5 × 2/2 = 2/10

New profit sharing ratio =

• Ram : Shyam : Krishna
• 4/10 : 4/10 : 2/10

=> 4 : 4 : 2 = 2 : 2 : 1

Therefore, the new profit sharing ratio will be

Ram : Shyam : Krishna = 2 : 2 : 1.