A and B are partners sharing profit or loss in the ratio of 3:2. C is admitted into partnership as a new partner. A sacrifices 1/3 of his share and B sacrifices 1/4 of his share in favour of C. What will be C's share in the firm?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 3/10.
Old ratio = 3:2
C is admitted into partnership as a new partner. A sacrifices 1/3 of his share and B sacrifices 1/4 of his share in favour of C.
Sacrifice by A = 1/3 x 3/5
= 1/5
Sacrifice of B = 1/4 x 2/5
= 1/10
C's share = 1/5+1/10
= (2+1)/10
= 3/10