Question

A and B were partners. C joins them and it is decided that A’s share will be half of B’s share and C’s share will be one third of A’s share, find new profit sharing ratio.

Options

• 1 : 2 : 1

• 2 : 4 : 1

• 3 : 6 : 2

• 3 : 6 : 1

Answer 1

3 : 6 : 1

Explanation:

New Ratio between A and B = 1 : 2

C’s share will be `1/3` of A’s share, hence C’s share = `1/3 xx 1/3`

= `1/9`

Hence, the New Ratio of A, B, and C = `1/3 : 2/3 : 1/9`

To simplify, use a common denominator of 9:

A’s share = `1/3`

= `(1 xx 3)/(3 xx 3)`

= `3/9`

B’s share = `2/3`

= `(2 xx 3)/(3 xx 3)`

= `6/9`

C’s share = `1/9`

The New Ratio of A, B, and C = `3/9 : 6/9 : 1/9` or 3 : 6 : 1