A and B share profits in the ratio of 3 : 2 . They agreed to admit C on the condition that A will sacrifice 3/25th of his share of profits in favour of C and B will sacrifice 1/25th of his profits in favour of C. the new profit sharing ratio will be
Answers
Explanation:
Solution :
★ Old Ratio :
A : B = 3 : 2
- A's Share = 3/5
- B's Share = 2/5
A's sacrifice in favour of C =
3/5 × 3/25 = 9/125
B's sacrifice in favour of C =
2/5 × 1/25 = 2/125
C's share = A's sacrifice share + B's sacrifice share
★ New profit sharing ratio :
A's new share =
3/5 - 9/125
(75 - 9)/125
66/125
B's new share =
2/5 - 2/125
(50 - 2)/125
48/125
C's share =
9/125 + 2/125
(9 + 2)/125
11/125
New profit sharing ratio =
- A : B : C
- 66/125 : 48/125 : 11/125
66 : 48 : 11
Therefore, the new profit sharing ratio will be A : B : C = 66 : 48 : 11.
Explanation:
A and B share profits in the ratio of 3 : 2
A will sacrifice 3/25th of his share of profits in favour of C
= 3/5×3/25 = 9/25
B will sacrifice 1/25th of his profits in favour of C
= 2/5×2/25 = 2/25
New ratio =
A = 3/5 - 9/25 =(75-9)/125 = 66/125
B= 2/5 - 2/25 =(50-2)/125 ,= 48/125
C = 9/25 + 2/25 = 11/125
New ratio =
A,B and C = 66:48:11