A and B are partners sharing profits in the ratio 4 : 3. They admit C as a partner. C gets 25% of A's share and 1/3rd from B. Calculate new profit sharing ratio.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - 9 : 2 : 10.
Old ratio = 4:3
C admit
A's sacrifice = 25% share
= 4/7 x 1/4
= 1/7
B's sacrifice = 1/3
C's share = 1/7 + 1/3
= (3+7)/21
= 10/21
A's new share = 4/7 - 1/7
= 3/7
B's new share = 3/7 - 1/3
= (9-7)/21
= 2/21
New ratio = 3/7 : 2/21 : 10/21
= 9/21 : 2/21 : 10/21
= 9:2:10