A and B are partners sharing profits in the ratio of 3:2 . They admit C for a 1/5th share in future profits, w

Question

A and B are partners sharing profits in the ratio of 3:2 . They admit C for a 1/5th share in future profits, which he acquires equally from both A and B. What will be the new profit-sharing ratio?

Accepted Answer

Let's break down the sacrifice made by each partner:Old Shares:

A = \frac{3}{5}, B = \frac{2}{5}

C's Share:

\frac{1}{5}

Share acquired by C equally from A and B:

Sacrifice by A = \frac{1}{5} \times \frac{1}{2} = \frac{1}{10}

Sacrifice by B = \frac{1}{5} \times \frac{1}{2} = \frac{1}{10}

Calculating New Shares (

New Share = Old Share - Sacrifice

):

A’s New Share = \frac{3}{5} - \frac{1}{10} = \frac{6}{10} - \frac{1}{10} = \frac{5}{10}

B’s New Share = \frac{2}{5} - \frac{1}{10} = \frac{4}{10} - \frac{1}{10} = \frac{3}{10}

C’s New Share = \frac{1}{5} = \frac{2}{10}

Thus, the new profit-sharing ratio is

5 : 3 : 2

, which can be written as

A \frac{5}{10}, B \frac{3}{10}, C \frac{2}{10}

.

A and B are partners sharing profits in the ratio of $3 : 2$ . They admit C for a $\frac{1}{5} th$ share in future profits, which he acquires equally from both A and B. What will be the new profit-sharing ratio?

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A and B are partners sharing profits in the ratio of 3:2. They admit C for a 51​th share in future profits, which he acquires equally from both A and B. What will be the new profit-sharing ratio?