A & B are partners sharing profits in ratio of 3:2. They admit C for 1/5th share in profit. C acquires 1/5th of his share from A and remaining from B. Find new profit-sharing ratio?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 14:6:5.
Old ratio between A & B = 3:2
C share= 1/5
A sacrifice = 1/5*1/5
= 1/25
So B gives = 1/5 - 1/25
= (5-1)/25
= 4/25
New share = old share - sacrificed share
A's new share = 3/5-1/25
= (15-1)/25
= 14/25
B's new share = 2/5-4/25
= (10-4)/25
= 6/25
New ratio is 14/25:6/25:1/5 or 14/25:6/25:5/25
= 14:6:5