Question

A and B are partners sharing profits and losses in the ratio 5 : 3. They admitted C and agreed to give him 3/10th of the profit. What is the new ratio after C's admission?

• A. $35:42:17$
• B. $35:21:24$
• C. $49:22:29$
• D. $34:20:12$

Answer 1

The correct option is B $35:21:24$

Old ratio (A and B) = 5 : 3

C is admitted for 3/10 share

Let the combined share of profit for all partners after c's admission = 1

Combined share of A and B after C's admission = 1 - C's share

= 1 - (3/10)

= 7/10

New ratio = Old ratio * Combined share of A and B

A's new share = (5/8) * (7/10)

= (7/16)

B's new share = (3/8) * (7/10)

= 21/80

C's share = 3/10

Therefore, new share of A, B and C = (7/16), (21/80) and (3/10)

= (35/80), (21/80) and (24/80)

= 35 : 21 : 24