Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A and B are the partners sharing profit in the ratio 5:4. They admitted C and D on the terms that C will take 1/4th share of A and B will sacrifice 1/3 from his share for D. Calculate new ratio.

Options:

15 : 5 : 5 : 12

15 : 4: 5 : 12

3 : 2 : 1 : 1

15 : 5 : 4 : 1

Correct Answer:

15 : 4: 5 : 12

Explanation:

The correct answer is option 2- 15 : 4: 5 : 12.

Old ratio  between A & B = 5:4
C & D admits
C will take 1/4th share of A and B will sacrifice 1/3 from his share for D.

A's sacrifice = 5/9 x 1/4
                   = 5/36

B sacrifice = 1/3

New share = Old share - Sacrificed share
New share of A = 5/9 - 5/36
                         = (20 - 5)/36
                         = 15/36

New share of B = 4/9 - 1/3
                         = (4-3)/9
                         =1/9

C = 5/36

D = 1/3

New ratio = 15/36 : 1/9 : 5/36 : 1/3
                = 15/36 : 4/36 : 5/36 : 12/36
                = 15:4:5:12