A and B are partners sharing profits and losses in the ratio of 5 : 4. C is admitted for 1/5th share. A and B decide to share equally in future. What will be the sacrificing Ratio?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 7:2.
Old ratio = 5:4 (A & B)
Share of C= 1/5
Let total share = 1
Remaining share after C = 1-1/5
= 4/5
A & B share future profits equally. So 4/5 will be distributed between them equally.
New Share of A = 1/2*4/5
= 4/10
New Share of B = 1/2/*4/5
= 4/10
New profit ratio (A, B & C) = 4/10 :4/10: 1/5
= 4/10:4/10:2/10
= 4:4:2 or 2:2:1
Sacrifice = Old share - New share
Sacrifice of A = 5/9-2/5
= (25-18)/45
= 7/45
Sacrifice of B = 4/9-2/5
= (20-18)/45
= 2/45
Sacrificing Ratio = 7/45 : 2/45
= 7:2