Question

Select the most appropriate answer from the alternative given below and rewrite the sentence.

Krishna and Balram, who are equal partners, admit Arjun into partnership for 1/4^th share, their new profit sharing ratio will be ________________.
a) 3:3:1
b) equal
c) 3:3:2
d) 2:2:1

Answer 1

Krishna and Balram, who are equal partners, admit Arjun into partnership for 1/4^th share, their new profit sharing ratio will be 3:3:2.

Explanation: It is calculated as follows:

Let the total share be 1.

$$\begin{gathered} \mathrm{Arjun}\text{'}\mathrm{s}\mathrm{share}=\frac{1}{4}\mathrm{or}\frac{2}{8} \\ \mathrm{Remaining}\mathrm{share}=1-\frac{1}{4}=\frac{3}{4} \\ \mathrm{Krishna}\text{'}\mathrm{s}\mathrm{share}=\frac{3}{4}\times \frac{1}{2}=\frac{3}{8} \\ \mathrm{Balram}\text{'}\mathrm{s}\mathrm{share}=\frac{3}{4}\times \frac{1}{2}=\frac{3}{8} \\ \mathrm{New}\mathrm{profit}\mathrm{sharing}\mathrm{ratio}\mathrm{of}\mathrm{Krishna},\mathrm{Balram}\mathrm{and}\mathrm{Arjun}=\frac{3}{8}:\frac{3}{8}:\frac{2}{8}\mathrm{or}3:3:2 \end{gathered}$$