Answer the next 5 questions from the passage-
A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. D is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from A and 1/8th from B. The total capital of the firm is agreed upon as ₹1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are ₹40,000, ₹35,000 and ₹30,000 respectively.
The New Profit Sharing Ratio in this case is-
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 9:5:4:6
Only A and B give up a share to D, so new share = old share − share given up for them, C keeps his old share, and D gets 1/4.
Old ratio 3:2:1, so A = 3/6, B = 2/6, C = 1/6
A’s new share = 3/6 − 1/8 = 12/24 − 3/24 = 9/24
B’s new share = 2/6 − 1/8 = 8/24 − 3/24 = 5/24
C’s new share = 1/6 = 4/24
D’s share = 1/4 = 6/24
New ratio of A, B, C and D = 9:5:4:6
Check: 9 + 5 + 4 + 6 = 24, so the shares add up to the whole profit.
NCERT (2026-27 edition):
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