Question

A and B are partners in a firm sharing profits in the ratio of 2 : 3. They admit C for ¼ share which he takes equally from A and B. Calculate the new profit sharing ratio.

Answer 1

Answer:

Correct option is

C

5:3:2

Old ratio (A and B) = 3 : 2

C is admitted for 1/5 th share

A's sacrifice in favour of C = (1/5) * (1/2) = (1/10)

B's sacrifice in favour of C = (1/5) * (1/2) = (1/10)

New ratio = Old ratio - Sacrificing ratio

A's new ratio = (3/5) - (1/10) = 5/10 or 1/5

B's new share = (2/5) - (1/10) = 3/10

C's share = A's sacrifice + B's sacrifice

= (1/10) + (1/10)

= 2/10

Therefore, new profit sharing ratio of A, B and C is 5 : 3 : 2

Explanation:

hope you have like it gives me a heart