Amar & Akbar were partners in a firm sharing P & L in ratio 3 : 2. Their Balance Sheet as at March 31, 2023 was as under:

They admitted Anthony as a new partner for 1/5 share which he acquired equally from Amar and Akbar.

Based on above information, answer questions.

New Ratio will be :

5 : 3 : 2

The correct answer is Option (4) - 5 : 3 : 2.

Old ratio = 3:2 (Amar & Akbar)
They admitted Anthony as a new partner for 1/5 share which he acquired equally from Amar and Akbar.

Share of Anthony = 1/5
Amar sacrifice = 1/5 x 1/2
                     = 1/10

Akbar sacrifice = 1/5 x 1/2
                     = 1/10

Amar new share = 3/5 - 1/10
                        = (6-1)/10
                        = 5/10

Akbar new share = 2/5 - 1/10
                         = (4-1)/10
                         = 3/10

New ratio = 5/10 : 3/10 : 1/5
              = 5/10 : 3/10 : 2/10
              = 5:3:2