A and B are partners sharing profit on 2:1 . C is admitted into the firm for 1/3rd share which he has brought equally from A and B. Find out the new profit sharing ratio.
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Answer:
4:2:3
Explanation:
Old ratio (A and B) = 2 : 1
C is admitted for 1/3th share
A sacrifices in favour of C = (1/3) * (2/3) = 2/9
B sacrifices in favour of C = (1/3) * (1/3) = 1/9
New ratio = Old ratio - sacificing ratio
A's new ratio = (2/3) - (2/9) = 4/9
B's new share = (1/3) - (1/9) =2/9
C's share = 1/3 or 3/9
Therefore, new profit sharing ratio of A, B and C is 4 : 2 : 3
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