A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/5th of his share and B surrenders 2/5th of his share and B surrenders 2/5th of his share in favour of C. the new ratio will be. A)8:4:3 b)42:26:7 c)4:8:3 d)26:42:7
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NEW RATIO OF A,B&C IS A : B : C = 9/25 : 6/25 : 10/25
A : B: C = 12:6:7
Explanation:
A'S OLD RATIO = 3/5 ; A SURRENDER IN FAVOR OF C = 3/5 × 1/5 = 3/25
A'S NEW PROFIT SHARING RATIO = 3/5 - 3/25 = 12/25
B'S OLD RATIO = 2/5 ; B SURRENDER IN FAVOR OF C = 2/5 × 2/5 = 4/25
B'S OLD RATIO = 2/5 - 4/25 = 6/25
C'S NEW RATIO = 3/25 + 4/25 = 7/25
NEW RATIO OF A,B&C IS A : B : C = 12/25 : 6/25 : 7/25
A : B: C = 12:6:7
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