and are partners in a firm sharing profits and losses in the ratio of . They admit as a partner for share in the profits of the firm. Calculate the new profit sharing ratio of , and if acquires his share as from and from .
- A
- B
- C
- D
Solution & Step-by-step Explanation
Old shares are and .
Calculate the new shares by subtracting what acquires from each:
Share of :
Thus, the new profit sharing ratio of is:
Calculate the new shares by subtracting what acquires from each:
Share of :
Thus, the new profit sharing ratio of is: