Multiple choice

A, B & C are co-venture. The relative Profit sharing ratio between A and B is $3:2$ and Between B & C is also $3:2$. Find out the profit sharing ratio between A, B and C.

  1. $3:2:2$
  2. $9:6:4$
  3. $4:3:2$
  4. $3:2:1$
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B Correct answer
Explanation

A:B = 3:2. B:C = 3:2. To combine, make B equal in both ratios. Multiply A:B by 3 and B:C by 2: A:B = 9:6, B:C = 6:4. Thus, A:B:C = 9:6:4.

AI explanation

When combining two different profit sharing ratios that share a common member, make the value of the common member equal in both ratios. The ratio of A to B is 3:2 and the ratio of B to C is 3:2. Multiplying the first ratio by 3 gives 9:6, and multiplying the second ratio by 2 gives 6:4. The final combined profit sharing ratio between A, B and C is therefore 9:6:4.

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