Target Exam

CUET

Subject

-- Accountancy Part A

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 profits 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:

The correct answer is option 1- 3:3:2.

Old ratio is 3:2
C share is 1/4
Let total share = 1
Remaining share after C's share = 1 - 1/4
                                                    = 3/4

This 3/4th is distributed between A & B equally.

A new share = 3/4*1/2
                     = 3/8 
B new share = 3/4*1/2
                     = 3/8

So, new ratio will be = 3/8 : 3/8 : 1/4
                                 = 3:3:2