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Question

Old ratio of A,B & C is 5:4:1.Calculate the new profit sharing ratio, when C acquires 1/5th Share from A & B equally.


A

None of the above

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B

3:4:3

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C

4:3:3

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D

3;3:4

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Solution

The correct option is C

4:3:3


Old ratio between A:B:C = 5:4:1.

C acquires 1/5th Share from A & B equally

B’s sacrifice= 1/5 X 1/2 = 1/10
A’s sacrifice= 1/5 X 1/2 = 1/10

C`s gain= 1/5

A = 5/10 -1/10 = 4/10

B = 4/10 - 1/10 = 3/10

C= 1/10 + 1/5 = 3/10

A:B:C = 4:3:3


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