Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a new partner for 1/4th share in the profits, which he acquired wholly from Das. The new profit sharing ratio of the partners is-

Options:

11:4:5

11:5:4

9:4:5

7:3:5

Correct Answer:

11:4:5

Explanation:

The correct answer is Option (1) → 11:4:5

Old shares — Das = 4/5, Sinha = 1/5.
Pal is admitted for 1/4, taken entirely from Das 

⇒ Das’ new share = 4/5 − 1/4

                           = 16/20 − 5/20

                           = 11/20.
Sinha unchanged = 1/5 = 4/20;

Pal = 1/4 = 5/20.
Hence new ratio Das : Sinha : Pal = 11 : 4 : 5.