X and Y share profits in the ratio of 3 : 2. Z was admitted as a partners who gets 1/5 share. If Z acquires 3/20 from X and 1/20 from Y. New profit sharing ratio would be:
Answer & explanation
Correct answer: option 1
The correct answer is option (1)- 9 : 7 : 4.
Old ratio = 3:2 (X & Y)
Z = 1/5
Sacrifice of X = 3/20
Sacrifice of Y = 1/20
New share = Old share - Sacrifice share
New share of X = 3/5 - 3/20
= (12-3)/20
= 9/20
New share of Y = 2/5 - 1/20
= (8-1)/20
= 7/20
Share of Z = 1/5
New ratio = 9/20 : 7/20 : 1/5
= 9/20 : 7/20 : 4/20
= 9:7:4