A and B are partners in a firm, sharing profits in the ratio of 3:2.C ...
A 3/5-(1/5×1/2)= 5/10B 2/5-(1/5×1/2)= 3/10C 1/10+1/10 = 2/10Sacrificing Ratio 1:1NPSR 5:3:2
A and B are partners in a firm, sharing profits in the ratio of 3:2.C ...
And B. The new profit sharing ratio between A, B and C becomes 5:3:2.
Let the total profit of the firm be x.
A's share in the profit = (3/5)x
B's share in the profit = (2/5)x
C is admitted for 1/5th share, which is (1/5)x.
C has acquired this share in equal proportions from A and B, which means he has acquired (1/10)x from each of them.
Now, the new profit sharing ratio between A, B and C becomes 5:3:2.
Let A's new share be y.
Therefore, B's new share will be (3/5)y and C's new share will be (2/5)y.
We know that C has acquired (1/10)x from A and (1/10)x from B. Therefore, his new share will be (1/5)y.
So, we can write the equation:
(3/5)x + (1/10)x = y + (1/5)y + (3/5)y
(1/2)x = (13/10)y
y = (5/13)x
Therefore, A's new share will be (5/13)x, B's new share will be (3/13)x and C's new share will be (2/13)x.
Hence, the new profit sharing ratio between A, B and C is 5:3:2.