Multiple choice

A and B are partners in a business sharing profits and losses in the ratio of 7 : 3. They admit C as a partner. A sacrificed 1/7th of his share and B sacrificed 1/3rd of his share in favour of C. Then, the new profit sharing ratio will be

  1. 3 : 1 : 1

  2. 2 : 1 : 1

  3. 2 : 2 : 1

  4. None of these
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A Correct answer
Explanation

A's share is 7/10, B's share is 3/10. A sacrifices 1/7 of 7/10 = 1/10. B sacrifices 1/3 of 3/10 = 1/10. New A = 6/10, New B = 2/10, C = 1/10 + 1/10 = 2/10. Ratio 6:2:2 = 3:1:1.

AI explanation

A sacrifices one-seventh of his 7 share, which equals 1, leaving A with a new share of 6. B sacrifices one-third of his 3 share, which also equals 1, leaving B with a new share of 2. C receives the total sacrificed share of 1 plus 1, giving him a share of 2, so the new profit sharing ratio is 6 to 2 to 2, which simplifies to 3 to 1 to 1.

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