Question

Gori and Sori share profits in the ratio of 3:2. Hori was admitted as a partner who gets a $\frac{1}{5}$ share, which Hori acquires $\frac{3}{20}$from Gori and $\frac{1}{20}$ from Sori. The new profit sharing ratio of Gori, Sori, and Hori would be:

• A. 0.379907407407407
• B. 0.338935185185185
• C. 0.256990740740741
• D. 0.42087962962963

Answer 1

Answer: (A)

0.379907407407407

Answer 2

1. Initial profit sharing ratio of Gori and Sori: - Gori’s share $=\frac{3}{5}$ Sori’s share $= \frac{2}{5}$
2. Hori’s share: - Hori receives a $\frac{1}{5}$ share, which is equivalent to $\frac{4}{20}$ . - Hori acquires $\frac{3}{20}$ from Gori and $\frac{1}{20}$from Sori.
3. Calculating the new shares: - New share of Gori:
Gori’s new share $=\frac{3}{5} - \frac{3}{20} = \frac{12}{20} - \frac{3}{20} = \frac{9}{20}$
New share of Sori:
Sori’s new share $=\frac{2}{5} - \frac{1}{20} = \frac{8}{20} - \frac{1}{20} = \frac{7}{20}$
Hori’s share $=\frac{1}{5} = \frac{4}{20}$
4. New profit sharing ratio of Gori, Sori, and Hori: - New ratio = Gori’s share : Sori’s share: Hori’s share - Convert shares to a common ratio:
Gori : Sori : Hori = 9 : 7 : 4