Practicing Success

Target Exam

CUET

Subject

Accountancy

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:

C share= 1/5
A gives 1/5*1/5= 1/25
So B gives 1/5 - 1/25 = 4/25
A's new share = 3/5-1/25= 14/25
B's new share= 2/5-4/25= 6/25
New ratio is 14/25:6/25:1/5 = 14:6:5