What will the profit and loss sharing ratios be after Oran's investment?
A) 1:2:4:2
B) 2:3:5:2
C) 3:4:6:2
D) 4:6:10:5
D) Each of the original partners has given up 20% of their interest to Oran. Their profit and loss sharing ratios will be 80% of what they were before the admission of Oran.
Lemon 20% × 80% = 16%
Mango 30% × 80% = 24%
Nobb 50% × 80% = 40%
Oran = 20%
Expressed as: 4:6:10:5
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