A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. D is admitted into firm for 1/4th share of profit, which he gets 1/8 from A and 1/8 from B. Calculate new profit sharing ratio of all the partners.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 9 : 5 : 4 : 6
D takes his 1/4 share as 1/8 from A and 1/8 from B, so only A’s and B’s shares go down; C keeps his old share.
A = 3/6 − 1/8 = 12/24 − 3/24 = 9/24
B = 2/6 − 1/8 = 8/24 − 3/24 = 5/24
C = 1/6 = 4/24
D = 1/4 = 6/24
New ratio = 9 : 5 : 4 : 6
NCERT (2026-27 edition):
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