A and B are partners in a firm sharing profits in 4:1. They admit Pal as a new partner for ¼ share in the profits, which he acquired wholly from A. New profit sharing ratio of the partners is:
A. 4:1:1
B. Equally
C. 11:4:5
D. none of the above
Answer:C
A and B are partners in a firm sharing profits in 4:1. They admit Pal as a new partner for ¼ share in the profits, which he acquired wholly from A. New profit sharing ratio of the partners is:
A. 4:1:1 B. Equally C. 11:4:5 D. none of the above