Question

A and B are partners in a firm sharing
profit and losses in the ration of 1:1 . C Is admitted a surrenders 1/4th share and B surrenders 1/4 th of his share in the favour of C. calculate the new profit sharing ratio.
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Answer 1

2:3:3

Explanation:

A:B=1:1

C is admitted to the firm

A surrender 1/4th share

therefore, A's new share = 1/2-1/4=2/8

B surrender 1/4th of his share

=1/4×1/2=1/8

therefore, B's new share =1/2-1/8=3/8

C's share=1/4+1/8=3/8

hence, new PSR =2:3:3