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A & B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5 from A and 1/10th from B, new profit sharing ratio will be |
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Answer» Old ratio (A and B) = 5 : 3 C is admitted for 3/10th share of profit A's sacrifice in favour of C = 1/5 B's sacrifice in favour of C = 1/10 New ratio = Old ratio - Sacrifcing ratio A's new ratio = (5/8) - (1/5) = 17/40 B's new ratio = (3/8) - (1/10) = 11/40 C's share = 3/10 or 12/40 Therefore, new profit sharing ratio of A : B : C is 17 : 11 : 12 |
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