What happens to the profit-sharing ratio among the old partners when a new partner is admitted to the partnership firm?

The profit-sharing ratio changes based on the respective contributions of all partners

When a new partner is admitted to a partnership, the profit sharing ratio among the old partners typically changes. The change in the profit sharing ratio is based on the respective contributions of all partners, including the new partner. The new partner's entry affects the distribution of profits, and the old partners may need to adjust their share of profits to accommodate the new partner's participation. The extent of this adjustment depends on factors such as the new partner's capital contribution, their expected contribution to the partnership's operations, and the terms agreed upon by all partners. By considering the contributions and expectations of all partners, the profit sharing ratio is revised to reflect the new partner's involvement and the overall dynamics of the partnership.