Calculation of New Ratio and Sacrificing Ratio

a) WneiM new partner acquires his share fron the old partners in their old ratio:
Example1
A and B are partners sharing profits and losses in the ratio 1:1. They admit C for a
third share. The new ratio and sacrificing ratio are as
follows:
Old ratio of A and B = 1:1
New ratio of A, Band C = 1:1:1
A'ssacrifice Old ratio - New ratio 1 3- 2
2 3 6 6
B's sacrifice 3-2 1
2 3 6
Sacrificing ratio of Aand B =

%:%=1:1
As the relative profit sharing ratio between the old
and sacrificing ratio of the old partners are the same. partners is not changed, the old ratio

Example 2
X and Y are partners sharing profits in the
ratio 3 : 2. They admit Z for a sixth share.
The new ratio and sacrificing ratio are as
follows:
Old ratio of X and Y = 3:2
Newratio of X, Y and Z = 3:2:1
X's sacrifice Old share - New share 3 3 18 -15 3
5 6 30 30
Y'ssacrifice = Old share - New share= 2 2 12 - -10 2
5 6 30 30
3
Sacrificing ratio ofX and Y=
30 30
As the relative profit sharing ratio
2-3:2
sacrificing ratio of the old partners are thebetween
same.
partners is not changed, the old ratio and
Example 3
P and Q are partners sharing profits and loSses in the
ratio 3 :2. They admit R for 4
share in future profits. Calculate the new ratio and sacrificing ratio.
Answer
3 2
Ratio of P and Q = 3:2 =
5 5
1
R's share =
4
3
Remaining portion 4 4
3
This portion is to be shared by P and Qin their old ratio.
Hence their new shares will be:
3 3
P'sshare 3 of 3
4 4 20

Q's share of 34 2x36

5 54 20
6 5
The new ratio between P, Q and R 20 20 20

3 9 12 -9 3
P's sacrifice old share - new share = 5 20 20 20

2 6 8-6 2
Q's sacrifice 5 20 20 20
3 2
= 3:2
Sacrificing ratio 20 20

Old ratio and sacrificing ratio are the same.

ratio from the old
b) When the new partner acquires his share of profit in any other agreed
partners:

Example 4
and S are partners sharing profit and losses in the ratio of 4 : 3. They admit T for.
R
ratio and sacrificing ratio.
share which he acquires equally from R and S. Calculate the new
Answer:
4 3
Ratio of R and S = 4:3 =
77
2
T's share 7
i.e., fromR + fromS)
7

4 1 3
R's new share 7
3 2
S's new share
77 7
 3 2 2
.
=3:2:2
T = 7
Thus,Here,
the the ratio of R, S and 7
ratio of Rand Sis egual (1:71) as Tacquires his share equally
newsacrificing
profit sharing
from them.
Example
Geeta5
and Reeta are partners sharing profits and losses in the ratio of 4:1, Pushpa is
admitted into the partnership with 4,sharein profits whichshe acquires wholly from Geeta

Determine the new profit sharing ratio and sacrificingratio if any. (Kerala Uty.)
Answer
Pushpa acquires her share of project ½wholly from Geeta.
4 16-5 11
Hence, Geeta's new share 20
5 4 20
4
Reeta's share 5 20
5
Pushpa's share 4 20
Thus new profit sharing ratio between
Geeta, Reeta and Pushpa 11 4 = 11: 4:5
20 20 20
Ihere is no sacrificing ratio as Geeta only suffers on admission of
Pushpa.
Example 6
Jand K are partners, sharing profits in the ratio 7 :5. They admit M for, share, which
heacquires from Jand from K. Find the new ratio and 6
24
Answer 0 8 sacrificing ratio. (M.G. Uy.)
Ratio of J and K = 7:5 = 7
12 12
Share ofJ acquired by M = 24

New share of J 14-1 13

12 24 24 24

Share of K acquired by M =

New share of K 10-3 7

12 8 24 24
1 4
M's share
24 24
13 7 4
New ratio of J, K and M = = 13:7:4
24 24 24
 1.11
Partnership -Introduction and Adnission ofa Partner

7 13 14 - 13
Loss of share toJ 12 24 24 24

7 10 - 7
Loss of share to K
12 24 24 24

Sacrificing Ratio of J&K = 241.: 3

Example 7
Raj and Mohan are partners in a firm sharing profits and losses in the ratio of 3 2.
Thampi is admitted into the partnership. Raj sacrifices 1/3 of his share andMohan 1/4 of his
share in favour of Thampi. Determine the new profit sharing ratio of the partners.
Answer
Ratioof Raj and Mohan = 3:2
3 3
Raj's sacrifice of share of
3 15
3 3 9-3 6
Raj's new share 15 1515

2 12 2
Mohan's sacrifice of share = of 773 20

2 2 8-2 6
=
Mohan's new share 5 20 20 20

3 2 12+ 6 18
+ =

Thampy's share 15 20 6060

Thampi
New profit sharing between Raj, Mohan and
6 6 18 24 18 18
15 20 60 60 60 60
= 24: 18: 18 = 4:3:3

Raj's sacrifice = Old share -new share

3 4 64 2
5 10 10 10
Old share - new share
Mohan's sacrifice =

2 4-3
=

5 10 10 10
2
= 2:1
Sacrificing ratio between Raj and Mohan=ni