A and B are equal partners. They admit C as a partner with 1/7th share. What is the new profit sharing ratio of A and B?a)6/7 : 1/7b)3/7 : 3/7c)4/7 : 2/7d)2/7 : 4/7Correct answer is option 'B'. Can you explain this answer?

Question

Answer

Given:
- A and B are equal partners.
- C is admitted as a partner with a 1/7th share.

To find:
- The new profit sharing ratio of A and B.

Solution:
Step 1: Determine the total number of shares.
Since A and B are equal partners, they each have an equal share. Let's assume their share to be x.
So, A's share = x and B's share = x.
C is admitted with a 1/7th share, so C's share = (1/7)x.

The total number of shares is the sum of the individual shares:
Total shares = A's share + B's share + C's share
Total shares = x + x + (1/7)x
Total shares = (2 + 1/7)x
Total shares = (15/7)x

Step 2: Determine the new profit sharing ratio.
The new profit sharing ratio is determined by dividing each partner's share by the total shares.

A's new profit sharing ratio = A's share / Total shares
A's new profit sharing ratio = (x) / ((15/7)x)
A's new profit sharing ratio = 1 / (15/7)
A's new profit sharing ratio = 7/15

B's new profit sharing ratio = B's share / Total shares
B's new profit sharing ratio = (x) / ((15/7)x)
B's new profit sharing ratio = 1 / (15/7)
B's new profit sharing ratio = 7/15

Therefore, the new profit sharing ratio of A and B is 7/15 : 7/15, which can be simplified to 1/3 : 1/3.

Step 3: Simplify the ratio.
The new profit sharing ratio can be simplified by dividing both sides by the common factor of 1/3.
1/3 : 1/3 = (1/3)/(1/3) : (1/3)/(1/3)
1/3 : 1/3 = 1 : 1

Hence, the new profit sharing ratio of A and B is 1 : 1, which is equivalent to 3/7 : 3/7. Therefore, the correct answer is option 'B'.

Answer

Total of 3 partners in one venture becomes:

a+b+c=1

Given:

c=17

The equation a+b+c=1 becomes:

a+b+17=1

a+b=67

We know that a=b. So, the equation a+b=67 becomes:

a+a=67

Solving for a

2a=67

a=37

Since a=b,

b=37

Ratio comes out to be:

a:b:c

37:37:17

The new profit sharing ratio of A and B is 37 eac

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