Question

A & B are partners sharing profits & Losses
in the ratio of 7:5 they agreed to admit C as
a partner who is to get 1/24
from A & 1/8 from B . Calculate the new profit sharing ratio.



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Answer 1

A : B

7 : 5

12. 12

C gets 1/24 from A

A 7/12 = 14/24

14/24-1/24 = 13/24 (x 2/2. 26/48)

A's new share

C gets 1/8 from B

1/8 = 6/48

so 5/12 = 20/48

20/48- 6/48 = 14/48

B's new share

C's share = 2/48+6/48=8/48

New Profit & loss sharing ratio

A : B : C

26:14:8