Maria and Magda are partners in a firm sharing profit and loss in the ratio of 3:2. They admit Leena as a new partner for 1/10 share of profit which is given by Maria and Magda equally, afterwards they admit Chantel as a new partner for 1/6 share and Maria decides to retain his original share. 

You are required to: 

1). Calculate the new ratio between Maria, Magda and Leena and 

2). Then calculate the new ratio between Maria, Magda, Leena and Chantel.  

3). Explain what is meant by " Partnership".

4). What does profit sharing ratio mean as one of the factors to be considered in the partnership agreement

Answer rating: 100% (QA)

1 Profit sharing ratio PSR amongst Maria Magda and Leena Maria existing 12 sacrificing ... View the full answer