Question

X and Y share profit and losses in the ratio of $4:3$ they admit Z in the firm it $3/7$ share which he gets $2/7$ from X and $1/7$ from C. The new profit sharing ratio will be __________ .

• A. $7:3:3$
• B. $2:2:3$
• C. $5:2:3$
• D. $2:3:3$

Answer 1

The correct option is B $2:2:3$

Old ratio (X and Y) = 4 : 3

Z admit for 3/7 share of profit

X sacrifice in favour of Z = 2/7

Y sacrifice in favour of Z = 1/7

New ratio = Old ratio - sacrificing ratiio

X's new ratio = (4/7) - (2/7) = 2/7

Y's new ratio = (3/7) - (1/7) = 2/7

C's share = 3/7

Therefore, new profit sharing ratio of X, Y and Z is 2 : 2 : 3