Question

A and B are partners in a firm with profit sharing ratio 2:3, they admit C as a partner for 1/4th share of profit. What is the new profit sharing ratio?

• A. 6:9:5
• B. 9:6:5
• C. 5:6:9
• D. 6:5:9

Answer 1

The correct option is A 6:9:5

New Ratio is calculated as follows:

C's Ratio= $1$/$4$

Therefore, existing partners' ratio= $1$-$1$/$4$= $3$/$4$

$3$/$4$ is to be divided amongst the old partners.

1.A= $2$/$5$ of $3$/$4$=$6$/$20$

2.B=$3$/$5$ of $3$/$4$= $9$/$20$

3. C= $1$/$4$ to be written as $5$/$20$ for equation.

New Ratio= 6:9:5