A and B are partners sharing profits in the ratio of 3:2. They admit C for 1/5th share in the future profits which he gets equally from both A and B. The new profit sharing ratio will be:
Answer & explanation
Correct answer: option 2
The correct answer is option 2- A 5/10, B 3/10, C 2/10.
Old ratio = 3:2 (A and B)
C = 1/5th
C gets equally from A and B.
Sacrificed share of each partner (A & B) = 1/5 x 1/2
= 1/10
New share = Old share - Sacrificed share
New share of A = 3/5 - 1/10
= (6-1)/10
= 5/10
New share of B = 2/5 - 1/10
= (4-1)/10
= 3/10
New ratio = 5/10 : 3/10 : 1/5
= 5/10 : 3/10 : 2/10