and are equal partners. They admit and as partners with and share respectively. What is the profit sharing ratio of all the partners?
- A
- B
- C
- D
Solution & Step-by-step Explanation
Let the total profit of the firm be .
Share given to
Share given to
Since and are equal partners, they divide the remaining share equally:
Expressing all shares with a common denominator of :
Thus, the new profit sharing ratio of is:
Share given to
Share given to
Since and are equal partners, they divide the remaining share equally:
Expressing all shares with a common denominator of :
Thus, the new profit sharing ratio of is: