X, Y & Z are partners sharing profit and losses in ratio of 5:4:1. Calculate new profit-sharing ratio if Z acquires 1/10th share of X and 1/2 share of Y?
Answer & explanation
Correct answer: option 1
Z acquires from X= 1/10*5/10= 1/20
Z acquires from Y = 1/2*4/10 = 4/20
So, Z new share is = 1/10+1/20+4/20= 7/20
X new share = 5/10-1/20 =9/20
Y new share = 4/10-4/20 = 4/20
So the new ratio is 9:4:7