Question

when a and b sharing profit and losses in the ratio of 3:2 , admit c as a partner giving him 1 / 5th share of profit .this will be given by a and b. a) equally.
b) in the ratio of their profit. c) in the ratio of their capital d) none of the above​

Answer 1

Answer:

b in the ratio of their profit

Explanation:

At the time of admission of a partner, the old partners sacrifice a part of their share of profits to provide for the share of the incoming partner. When the new profit sharing ratio is not provided, the sacrificing ratio is their old profit sharing ratio. Thus, A and B will provide C with the 1/5th share of profits in the ratio of their profits.