Question

A and B are partners sharing profits in the ratio 5 : 3. They admitted C giving him 3/10th share of profit. If C acquires $1/5^{th}$ share from A and $1/{10}^{th}$ from B, new profit sharing ratio will be:

• A. 5:6:3
• B. 2:4:6
• C. 18:24:38
• D. 17:11:12

Answer 1

The correct option is D 17:11:12

The old profit sharing ratio between A and B = 5:3

C acquires 1/5^th share from A and 1/10^th share from B

Hence the total share of C=

$\frac{1}{5}+\frac{1}{10}=\frac{3}{10}$

Thus, A's share after giving 1/5th of share to C = $\frac{5}{8}-\frac{1}{5}=\frac{17}{40}$

B's share after giving 1/10th of share to C = $\frac{3}{8}-\frac{1}{10}=\frac{22}{80}$

Thus, the share of A will be $\frac{17}{40}$, the share of B will be $\frac{11}{40}$ and share of C will be $\frac{12}{40}$

Therefore, the new profit sharing ratio between A, B and C will be 17:11:12