Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Gori and Sori share profits in the ratio of 3 : 2. Hori was admitted as a partner who gets 1/5 share which Hori acquires 3/20 from Gori and 1/20 from Sori. New profit sharing ratio of Gori, Sori and Hori would be:

Options:

9 : 7 : 4

8 : 8 : 4

6 : 10 : 4

10 : 6 : 4

Correct Answer:

9 : 7 : 4

Explanation:

The correct answer is Option (1) → 9 : 7 : 4.

Old ratio between Gori and Sori = 3:2
Hori admits in the firm with 1/5 share

Sacrificed share = 3/20 and 1/20 (Gori and Sori)

New share = Old share - Sacrificed share

Gori new share = 3/5 - 3/20
                         = (12-3)/20
                         = 9/20

Sori new share = 2/5 - 1/20
                         = (8-1)/20
                         = 7/20

New ratio = 9/20 : 7/20 : 1/5
                = 9/20 : 7/20 : 4/20
                = 9:7:4