A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. A new partner C is admitted. A surrenders 1/15th share of his profit in favour of C and B surrenders 2/15th of his share in favour of C. The new ratio will be :
Answer & explanation
Correct answer: option 2
A's sacrifice = 3/5 x 1/15
= 3/75
B's sacrifice = 2/5 x 2/15
= 4/75
C's share = 3/75 + 4/75
= 7/75
A's new share = 3/5 -3/75
= (45-3)/75
= 42/75
B's new share = 2/5 - 4/75
= (30-4)/75
= 26/75
NEW PROFIT SHARING RATIO IS 42/75 : 26/75 : 7/75
=42:26:7