A and B are partners in a partnership firm, sharing profits in 3 : 2 ratio. They agreed to admit new partner C. A sacrifices 1/6 from his share and B sacrifices 1/4 from his share. Calculate new profit sharing ratio between A, B and C.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 26 : 9 : 25.
Old ratio = 3:2 ( A & B)
C admits
A sacrifices 1/6 from his share and B sacrifices 1/4 from his share
New share = Old share - Sacrifice share
A's sacrifice = 1/6
New share of A = 3/5 - 1/6
= (18-5)/30
= 13/30
B's sacrifice = 1/4
New share of B = 2/5 - 1/4
= (8-5)/20
= 3/20
Share of C = 1/6 + 1/4
= (2+3)/12
= 5/12
New ratio = 13/30 : 3/20 :5/12
= 26/60 : 9/60 : 25/60
= 26:9:25