The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows:

Addition Information:
(a) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit.
(b) Rachit will bring ₹25,000 for capital and ₹15,000 for goodwill.
(c) A provision for doubtful debts of 7% was to be made.
(d) Land and building is to be appreciated to 120%.
(e) Machinery is decreased by ₹1,500.

On the basis of above case give answer to question:

Determine the new profit-sharing ratio among partners, after Rachit's admission.

5:3:2:2

The correct answer is option 2- 5:3:2:2.

Old ratio between old partners is capital ratio which means 35,000:21,000:14,000
                                                                                         =  5:3:2
Rachit share = 1/6
Total share = 1
Remaining share = 1- 1/6
                         = 5/6
This 5/6 share is distributed between old partners in old ratio to know their new share
Himanshu = 5/6 X 5/10
               = 25/60
Parnav = 5/6 X 3/10
          = 15/60
Tushar = 5/6 X 2/10
          = 10/60
NEW RATIO = 25/60 :15/60:10/60:1/6
                 = 25/60 :15/60:10/60:10/60
                 = 25:15:10:10
                 =  5:3:2:2