A and B are partners in a firm sharing profits and losses in the ratio 1:2. They admitted C into the partnership and decided to give him 1/3rd share of the full profits. What is the new ratio of the partners?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 2:4:3.
Old ratio of A & B = 1:2
C admits with 1/3
Let total share = 1
Remaining share after C share = 1- 1/3
= 2/3
This 2/3 is shared between old partners in old ratio.
A's new share = 2/3 x 1/3
= 2/9
B's new share = 2/3 x 2/3
= 4/9
New ratio = 2/9 : 4/9 : 1/3 or 2/9 : 4/9 : 3/9
= 2:4:3