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Question
Anuj and Eeshan are two partners sharing profits and losses in the ratio of 3:2. They decided to admit Aaroh for 1/5th share, the new profit sharing ratio will be ____________
Options
12 : 8 : 5
4 : 3 : 1
12 : 8 : 1
12 : 3 : 1
Solution
Anuj and Eeshan are two partners sharing profits and losses in the ratio of 3:2. They decided to admit Aaroh for 1/5th share, the new profit sharing ratio will be 12 : 8 : 5.
Explanation:
Current Profit Sharing Ratio of Anuj and Eeshan = 3 : 2
Aaroh’s Share = `1/5`
Thus, the remaining share for Anuj and Eeshan = `1−1/5 = 4/5`
Anuj and Eeshan will share the remaining 4554 in their existing ratio of 3 : 2.
Anuj’s new share = `3/5 × 4/5 = 12/25`
Eeshan’s new share = `2/5 × 4/5 = 8/25`
Aaroh’s share = `1/5 = (1 xx 5)/(5 xx 5) = 5/25`
New Profit Sharing Ratio: Anuj : Eeshan : Aaroh = 12 : 8 : 5
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