Kim and Sim are partners in a firm sharing profits in 4:3 ratio. They admitted Pim as a new partner for 1/4 share in the profits, which he acquired in the ratio of 3:2 from Kim and Sim. Determine the new profit sharing ratio of the partners.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- 59:46:35.
Kim and Sim = 4:3 (old ratio)
Pim admits = 1/4 share
Kim and Sim = 3:2 (sacrificing ratio)
Sacrificed share of Kim = 1/4 x 3/5
= 3/20
Sacrificed share of Sim = 1/4 x 2/5
= 2/20
NEW SHARE = OLD SHARE - SACRIFICED SHARE
New share of Kim = 4/7 - 3/20
= (80-21)/140
= 59/140
New share of Sim = 3/7 - 2/20
= (60-14)/140
= 46/140
Share of Pim = 1/4 or 35/140
New ratio = 59/140 : 46/140 : 35/140
= 59:46:35