Sita and Gita are partners sharing profits and losses in the ratio of 3 : 2. They admitted Rita as a new partner for 1/5th share in the future profits of the firm which she gets equally from Sita and Gita. State the new profit sharing ratio of Sita, Gita and Rita.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - 5 : 3 : 2.
Old ratio = 3:2
Rita admit = 1/5th which she gets equally from Sita and Gita.
Sita sacrifice = 1/5 x 1/2
= 1/10
Gita sacrifice = 1/5 x 1/2
= 1/10
Sita new share = 3/5 - 1/10
= (6-1)/10
= 5/10
Gita new share = 2/5 - 1/10
= (4-1)/10
= 3/10
NEW RATIO = 5/10 : 3/10 : 1/5
= 5/10 : 3/10 : 2/10
= 5:3:2