A and B share profits in the ratio of . C was admitted as a partner who gets share. New profit sharing ratio, if C acquires from A and from B, would be:
- A
- B
- C
- D
Solution & Step-by-step Explanation
Let's calculate the new shares step-by-step:Old Shares: Sacrifice by A to C = Sacrifice by B to C = New Share of A:
New Share of B:
Share of C:
Combining these, the new profit sharing ratio among A, B, and C is .
New Share of B:
Share of C:
Combining these, the new profit sharing ratio among A, B, and C is .