Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

X and Y share profits in the ratio of 3 : 2. Z was admitted as a partners who gets 1/5 share. If Z acquires 3/20 from X and 1/20 from Y. New profit sharing ratio would be: 

Options:

9 : 7 : 4

6 : 10 : 4

10 : 6 : 4

8 : 8 : 4

Correct Answer:

9 : 7 : 4

Explanation:

The correct answer is option (1) : 9 : 7 : 4.

Old ratio = 3:2 (X & Y)
Z = 1/5

Sacrifice of X = 3/20
Sacrifice of Y = 1/20

New ratio = Old share - Sacrifice share

New share of X = 3/5 - 3/20
                       = (12-3)/20
                       = 9/20

New share of Y = 2/5 - 1/20
                      = (8-1)/20
                      = 7/20

Share of Z = 1/5

New ratio = 9/20 : 7/20 : 1/5
               = 9/20 : 7/20 : 4/20
               = 9:7:4