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The profit – sharing ratio of A to B is 1 : 4. If C is admitted to the partnership with a profit – sharing percentage of 50%, find the new profit – sharing ratio.

The profit – sharing ratio of A to B is 1 : 4. If C is admitted to the partnership with a profit – sharing percentage of 50%, find the new profit – sharing ratio. Correct Answer 1 : 4 : 5

The initial profit – sharing ratio = 1 : 4 The profit guaranteed to the third partner = 50% profit The new profit – sharing ratio: New ratio of A to B = 1 : 4 of the remaining 50% A : B : C = 10 : 40 : 50 = 1 : 4 : 5

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