Practical Problems · Q4
Q.A and B share profits and losses in the ratio 3:2. They admit C, giving him a 1/5th share of future profits, which he acquires equally from A and B. Calculate
(i) the new profit-sharing ratio of A, B and C, and
(ii) the sacrificing ratio of A and B.
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✓ Free question
- New profit-sharing ratio Old ratio A:B = 3:2, so A's share = 3/5 and B's share = 2/5. C is given a 1/5th share, acquired EQUALLY from A and B, so each of them sacrifices half of C's share, i.e. 1/2 × 1/5 = 1/10 each. A's new share = 3/5 − 1/10 = 6/10 − 1/10 = 5/10 = 1/2. B's new share = 2/5 − 1/10 = 4/10 − 1/10 = 3/10. C's share = 1/5 = 2/10. Expressing all three over the common denominator 10: A : B : C = 5/10 : 3/10 : 2/10 = 5 : 3 : 2 (check: 5 + 3 + 2 = 10, the full whole — correct).
- Sacrificing ratio
Sacrifice = Old Share − New Share, for each old partner.
A's sacrifice = 3/5 − 1/2 = 6/10 − 5/10 = 1/10.
B's sacrifice = 2/5 − 3/10 = 4/10 − 3/10 = 1/10.
Sacrificing ratio of A : B = 1/10 : 1/10 = 1 : 1, confirming that both partners have indeed sacrificed equally, exactly as the question stated.
✓Final answer
New profit-sharing ratio of A, B and C = 5 : 3 : 2. Sacrificing ratio of A and B = 1 : 1 (equal).
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