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Question -

Rao and Swami are partners in a firm sharing profits and losses in 3:2 ratio. They admit Ravi as a new partner for 1/8 share in the profits. The new profit sharing ratio between Rao and Swami is 4:3. Calculate new profit sharing ratio and sacrificing ratio?



Answer -



New Ratio = Combined Share of Rao and Swami × Proportion of Rao and Swami in the combined share



4:3:1
Sacrificing Ratio = Old Ratio − New Ratio

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