Question

A and B are partners sharing profits in the ratio of 2:12:1. C is admitted for $1/5$th share. The new profit sharing ratio will be _________.

• A. $3:1:1$
• B. $1:3:1$
• C. $2:2:1$
• D. None of these

Answer 1

The correct option is A $3:1:1$

Old ratio (A and B) = 2 : 1

C is admitted for 1/5th share

A sacrifices in favour of C = (1/5) * (1/3) = 1/15

B sacrifices in favour of C = (1/5) * (2/3) = 2/15

New ratio = Old ratio - sacificing ratio

A's new ratio = (2/3) - (1/15) = 9/15

B's new share = (1/3) - (2/15) =3/15

C's share = 1/5 or 3/15

Therefore, new profit sharing ratio of A, B and C is 9 : 3 : 3 or 3 : 1 : 1