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.
Answer & explanation
Correct answer: option 2
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