Multiple choice

A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. C joins the firm for a quarter share in the future profits. He acquires his share of profits from the original partners in their profit sharing ratio. Calculate new profit sharing ratio for the future.

  1. 9 : 6 : 5

  2. 5 : 6 : 9

  3. 9 : 4 : 5

  4. 9 : 5 : 6

  5. 8 : 7 : 5
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A:B = 3:2. C gets 1/4. Remaining share = 3/4. This is divided between A and B in 3:2 ratio. A's new share = 3/4 * 3/5 = 9/20. B's new share = 3/4 * 2/5 = 6/20. C's share = 1/4 = 5/20. Ratio = 9:6:5.

AI explanation

C's quarter share leaves 3/4 of the total profit for the original partners. This 3/4 is distributed between A and B in their old ratio of 3:2, so A's new share is 3/4 of 3/5, which is 9/20, and B's new share is 3/4 of 2/5, which is 6/20. Converting these fractions along with C's 5/20 share into whole numbers gives the new profit sharing ratio of 9:6:5.

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