A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share remainingprofits in the ratio of 3:2. Find the profit sharing ratio of A.
Question
A, B, C and D are partners. A and B share 2/3rd of profits equally and C and D share remainingprofits in the ratio of 3:2. Find the profit sharing ratio of A.
Solution
The total profit is considered as 1 (or 100%). A and B share 2/3rd of the profits equally. So, each of A and B gets 1/2 of 2/3rd, which is 1/3rd (or 33.33%).
Therefore, the profit sharing ratio of A is 1:3.
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