Question

A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for a `1/5` share in the profits of the firm. If C gets it wholly from A, the new profit-sharing ratio after C’s admission will be ______.

Options

• 1 : 3 : 3

• 3 : 1 : 1

• 2 : 2 : 1

• 1 : 3 : 1

Answer 1

A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. C is admitted for a `1/5` share in the profits of the firm. If C gets it wholly from A, the new profit-sharing ratio after C’s admission will be 1 : 3 : 1.

Explanation:

A’s Share = `2/5`

B’s Share = `3/5`

C’s Share = `1/5`

A’s new Share = `2/5 - 1/5`

= `1/5`

The new shares for partners A, B, and C = `1/5 : 3/5 : 1/5` or 1 : 3 : 1.