Capital P/L ratio

Mimi 9000 40%

Lulu 15000 60%
24000 100%

a Lulu buys 1/4 the interest of Mimi for 3000

Mimi Capital (1/4 x 9000) 2250

Lulu 2250

Old partnership New partnership

Mimi 9000 6750
Gigi 15000 15000
Lulu - 2250
24000 24000

Old partnership New partnership

Mimi 40% 30%
Gigi 60% 60%
Lulu - 10%

b, Lulu buys 1/5 the interest of Gigi for 2000

Capital 3000
Gigi 3000
Lulu
 Old partnership New partnership
Mimi 9000 9000
Gigi 15000 12000
Lulu - 3000
24000 24000

Mimi 40% 40%

Gigi 60% 48%
Lulu - 12%
100%