A and B share profits in the ratio of 3:2. C was admitted as a partner who gets 1/5 share. New profit sharing ratio, if C acquires 3/20 from A and 1/20 from B, would be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 9:7:4
Each old partner’s new share is his old share less what he gives to C.
A’s new share = 3/5 − 3/20 = 12/20 − 3/20 = 9/20
B’s new share = 2/5 − 1/20 = 8/20 − 1/20 = 7/20
C’s share = 3/20 + 1/20 = 4/20 (= 1/5)
New profit sharing ratio = 9:7:4
NCERT (2026-27 edition):
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