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M/s. Ali & Baba LLC, a partnership firm decides to increase the business volume and the same accepted by partners Ali and Baba. The business

M/s. Ali & Baba LLC, a partnership firm decides to increase the business volume and the same accepted by partners Ali and Baba. The business is started searching a good partner in to the partnership with two different decisions. The first decision tells that the partners Ali and Baba sharing profits in the ratio of 7:3 and admitting Saleem in to the partnership for 1/5th share of future profits which will be acquired 3/10th from Ali and 1/10th from Baba. The second decision tells that the partners Ali & Baba sharing profits in the ratio of 5:2 and admitting Saleem as new partner. He will be acquired 2/5th of Ali s share and 1/5 of Babas share. Calculate new ratio and sacrificing ratio of the partners and suggest which alternative is good for the new partner? Comment it.

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