Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

X, Y & Z are partners sharing profit and losses in ratio of 5:4:1. Calculate new profit-sharing ratio if Z acquires 1/5th share from X?

Options:

3:4:3

4:3:3

2:4:5

9:4:7

Correct Answer:

3:4:3

Explanation:

Z acquires 1/5th from X
So Z share is 1/10+ 1/5= 3/10
X Share = 5/10- 1/5=3/10
Y share= 4/10
So the new ratio is 3/10:4/10:3/10 or 3:4:3