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 ________________.

Options

• 3:3:1

• equal

• 3:3:2

• 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.

Arjun's share = `1/4` or `2/8`

Remaining share = `1-1/4 = 3/4`

Krishna's share = `3/4 xx 1/2 = 3/8`

Balram's share = `3/4 xx 1/2 = 3/8`

New profit sharing ratio of krishna , Balram and Arjun = `3/8 : 3/8 : 2/8` or 3 : 3 : 2.