A and B are partners sharing profits in the ratio of 4 : 3. They admitted C as a new partner who gets 1/5th share of profit, entirely from A. The new profit sharing ratio will be :
Answer & explanation
Correct answer: option 3
C's share = 1/5
C gets whole his share from A.
So, Share of A= 4/7-1/5
= (20-7)/35
= 13/35
Share of B =3/7 or 15/35
Share of C=1/5 or 7/35
NEW PROFIT SHARING RATIO IS 13/35 : 15/35 : 7/35
= 13:15:7