Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

A and B are partners sharing profits in the ratio of 3:2. They admit C for 1/5th share in the future profits which he gets equally from both A and B. The new profit sharing ratio will be:

Options:

A 4/10, B 2/10, C 4/10

A 5/10, B 3/10, C 2/10

A 2/10, B 3/10, C 5/10

A 3/10, B 3/10, C 4/10

Correct Answer:

A 5/10, B 3/10, C 2/10

Explanation:

The correct answer is option 2- A 5/10, B 3/10, C 2/10.

Old ratio = 3:2 (A and B)

C = 1/5th
C gets equally from A and B. 

Sacrificed share of each partner (A & B) = 1/5 x 1/2
                                                          = 1/10

New share = Old share - Sacrificed share

New share of A = 3/5 - 1/10
                       = (6-1)/10
                       = 5/10

New share of B = 2/5 - 1/10
                       = (4-1)/10
                       = 3/10

New ratio = 5/10 : 3/10 : 1/5
               = 5/10 : 3/10 : 2/10