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 1/4 share in the profits, which he acquired wholly from Das. Determine the new profit sharing ratio among Das, Sinha and Pal.

Options:

11:5:4

11:4:5

5:4:11

4:11:5

Correct Answer:

11:4:5

Explanation:

The correct answer is option 2- 11:4:5.

Das and Sinha = 4:1 (old ratio)
Pal admit = 1/4
Pal acquired wholly from Das

Sacrificed share of Das = 1/4

Das new share = 4/5 - 1/4
                      = (16-5)/20
                      = 11/20

Sinha share will be same as old share i.e. 1/5

New ratio = 11/20 : 1/5 : 1/4
               = 11/20 : 4/20: 5:20
               = 11:4:5