A and B are partners in a firm sharing profit and losses in the ratio of 5:3. A surrenders 1/5th of
share, whereas B surrenders 1/3 of his share in favour of C a new partner Calculate the new profit
sharing ratio
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Answer:
2:1:1
Explanation:
A's sacrifice=5/8*1/5=1/8 and B's sacrifice=3/8*1/3=1/8
Thus C's share of profit=1/8+1/8=2/8
A's share of profit=5/8-1/8=4/8
B's share of profit=3/8-1/8=2/8
A:B:C=4:2:2 or 2:1:1
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