X, Y & Z are partners sharing profit and losses in ratio of 5:4:1. Calculate new profit ratio if Z acquires 1/5 share equally from X and Y?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 4:3:3
Z acquires 1/5th share equally means 1/5*1/2 = 1/10 from X and 1/10 from Y
X new share = 5/10- 1/10
= 4/10
Y new share = 4/10 - 1/10
= 3/10
Z new share = 1/10 + 1/10 + 1/10
= 3/10
So new ratio is 4:3:3.