A and B are sharing profit in 3:2 ratio. They admitted C. After the admission, new ratio of profit sharing is 5:3:2. C brought 1000 as the premium of goodwill. In which ratio premium of goodwill be distributed?
Answer & explanation
Correct answer: option 3
"Sacrifice ratio= old-new
A= 3/5-5/10= 1/10
B= 2/5-3/10= 1/10
"
A= 3/5-5/10= 1/10
B= 2/5-3/10= 1/10
"