Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A and B are partners in a firm. They admit C for 1/4th share. What will be the new ratio between partners if A and B shares profits in future in 2:1?

Options:

2:2:2

2:2:1

2:1:1

None of these

Correct Answer:

2:1:1

Explanation:

C share is 1/4
The remaining share is 1-1/4= 3/4.
3/4 is distributed between A & B in 2:1
A new share= 3/4*2/3= 6/12
B new share= 1/3*3/4= 3/12
So, the new ratio is 6/12:3/12:1/4 means 6:3:3 or 2:1:1