Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

A & B are partners sharing profits in ratio of 3:2. They admit C for 1/5th share in profit. C acquires 1/5th of his share from A and remaining from B. Find new profit-sharing ratio?

Options:

3:5:6

14:6:5

2:2:1

14:5:6

Correct Answer:

14:6:5

Explanation:

The correct answer is option 2- 14:6:5.

Old ratio between A & B = 3:2

C share= 1/5
A sacrifice =  1/5*1/5
                = 1/25

So B gives = 1/5 - 1/25
                = (5-1)/25
                = 4/25

New share = old share - sacrificed share

A's new share = 3/5-1/25
                     = (15-1)/25
                     = 14/25

B's new share = 2/5-4/25
                     = (10-4)/25
                     = 6/25

New ratio is 14/25:6/25:1/5  or 14/25:6/25:5/25
                 = 14:6:5