A and B are partner sharing profits in the ratio of 2:1 in futur they will share profit in the ratio of 3:2 calculate the sacrificing ratio
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A
2:2:1
Old ratio (A and B) = 1 : 2
C is admitted for 1/5 share of profit
Let the combined share of all partners after C's admission = 1
Combined share of A and B in the new firm = 1 - C's share
= 1 - (1/5)
= (4/5) * (1/2)
= 4/10 each
New ratio of A, B and C = 4/10, 4/10 and 1/5
= 4 : 4 : 2 or 2 : 2 : 1
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