Question

C, D, and E were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted F as a new partner for a `1/4` share in the profits, which was sacrificed by C, D, and E in the ratio of 2 : 1 : 2. C’s new share in the profits will be ______.

Options

• `2/5`

• `3/5`

• `3/10`

• `4/20`

Answer 1

C, D, and E were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted F as a new partner for a `1/4` share in the profits, which was sacrificed by C, D, and E in the ratio of 2 : 1 : 2. C’s new share in the profits will be `bbunderline(2/5)`.

Explanation:

Old Profit Sharing Ratio = 5 : 3 : 2

C’s Old Share = `5/10`

F’s Total Share = `1/4`

Sacrificing Ratio of C, D, and E = 2 : 1 : 2

Calculate the exact share sacrificed by C:

C gives up a portion of his share equal to `2/5` of F’s total share:

C’s Sacrificed Share = `1/4 xx 2/5`

= `2/20`

Calculate C’s new share:

C’s New Share = `5/10 - 2/20`

= `(5 xx 2)/(10 xx 2) - 2/20`

= `10/20 - 2/20`

= `8/20`

= `2/5`