A and B are partners in a firm sharing profits and losses in the ratio of 3:2. C is admitted for 1/4th share in profits of the firm. Calculate new profit sharing ratio of the partners.
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Old ratio (A and B) = 3 : 2
C is admitted for 1/4 share
Let the combined share of A, B and C = 1
Combined share of A and B after C's admission = 1 - C's share
= 1 - (1/4) = 3/4
New share :
A = (3/4) * (1/2) = 3/8
B = (3/4) * (1/2) = 3/8
C = 1/4
Therefore, A : B : C = 3/8 : 3/8 : 1/4
= 3 : 3 : 2
Sacrificing ratio = Old ratio - New ratio
A's sacrifice = (3/5) - (3/8) = 9/24
B's sacrifice = (2/5) - (3/8) = 1/24
Therefore, sacrificing ratio of A and b is 9 : 1
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