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Question

A and B are partners sharing profits in the ratio of 3:2. They decided to admit C and decided to share profits equally. In this case, who is sacrifing the share of profits?


A

C only

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B

Both A & B

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C

A only

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D

B only

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Solution

The correct option is A

C only


Old ratio: 3:2

New ratio: 1:1:1

Sacrificing ratio= Old ratio – New ratio

A’s sacrifice = 3/5 - 1/3 = 4/9
B's sacrifice = 2/5 - 1/3 = 1/9


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