A and B are partners in a firm sharing profit in 4 : 1 ratio. They admitted "C" as a new partner for 25% share in the profit, which he acquired wholly from A. Determine the new profit sharing ratio.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 11 : 4 : 5
C’s share = 25% = 1/4, taken wholly from A.
A’s new share = 4/5 − 1/4 = 11/20
B’s share = 1/5 = 4/20 (unchanged)
C’s share = 1/4 = 5/20
New ratio = 11 : 4 : 5
NCERT (2026-27 edition):
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