Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

A and B are partners in a partnership firm, sharing profits in 3 : 2 ratio. They agreed to admit new partner C. A sacrifices 1/6 from his share and B sacrifices 1/4 from his share. Calculate new profit sharing ratio between A, B and C.

Options:

26 : 9 : 25

5 : 3 : 2

1 : 1 : 1

25 20 : 15

Correct Answer:

26 : 9 : 25

Explanation:

The correct answer is Option (1) → 26 : 9 : 25.

Old ratio = 3:2 ( A & B) 
C admits

A sacrifices 1/6 from his share and B sacrifices 1/4 from his share

New share = Old share - Sacrifice share

A's sacrifice = 1/6
New share of A = 3/5 - 1/6
                       = (18-5)/30
                       = 13/30

B's sacrifice = 1/4
New share of B = 2/5 - 1/4
                       = (8-5)/20
                       = 3/20

Share of C = 1/6 + 1/4
                = (2+3)/12
                = 5/12

New ratio = 13/30 : 3/20 :5/12
              = 26/60 : 9/60 : 25/60
              = 26:9:25