Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A & B are partners sharing profits in ratio of 1:2. Their fixed capitals were ₹2,00,000 & ₹3,00,000 respectively. C was admitted with 1/4th share and brought ₹2,00,000 for his capital which was also kept fixed. C acquired his share of profit from B.

Calculate new profit-sharing ratio?

Options:

5:4:3

4:5:3

10:8:7

3:4:5

Correct Answer:

4:5:3

Explanation:

The correct answer is option 2- 4:5:3.

Old ratio = 1:2 (A & B)
C share = 1/4
C acquired his share from B only.
B new share = 2/3-1/4
                     = (8-3)/12
                     = 5/12

A share is 1/3

So, the new ratio = 1/3 :5/12: 1/4
                            = 4/12 :5/12 : 3/12
                            =  4:5:3