X and Y are partners sharing profit in the ratio of 3:2. Z was admitted with 1/4 share in profits which he acquires equally from X and Y. The new ratio will be:
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 19:11:10.
X's old share = 3/5
Y's old share = 2/5
Z's share = 1/4
Since Z acquires 1/4 from X and Y equally, half of 1/4, i.e., 1/4 ÷ 2 = 1/8 will be deducted from X's and Y's share.
New share = Old share - Sacrifice
X's New share = 3/5 - 1/8
= (24 - 5)/40
= 19/40
Y's New share = 2/5 - 1/8
= (16 - 5)/40
= 11/40
Z share = 1/4, or 10/40
Therefore, the new profit-sharing ratio = 19/40 : 11/40 : 10/40
= 19:11:10.