Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A & B are partners sharing profits in ratio of 3:2. C is admitted for 1/4th share. A and B decide to share equally in future. What will be the new profit-sharing ratio?

Options:

3:3:2

2:2:3

3:3:1

2:2:1

Correct Answer:

3:3:2

Explanation:

Old ratio is 3:2
C share is 1/4
Remaining share = 1-1/4= 3/4 which is distributed between A & B equally.
A new share is 3/4*1/2 = 3/8
B new share is 3/4*1/2= 3/8
So, new ratio will be=3/8 :3/8:1/4 = 3:3:2