Practicing Success
A & B are equal partners in a partnership firm. They admit C & D as partners with 1/5th and 1/6th share respectively. What will be the new profit-sharing ratio? |
19:19:10:12 19:19:12:10 12:12:19:10 19:12:19:10 |
19:19:12:10 |
The correct answer is option 2- 19:19:12:10. OLD RATIO IS 1:1 (A&B) Let total share of the firm = 1 This 19/30 share is distributed between old partners in their old ratio i.e. equally. B's NEW SHARE = 19/30 X 1/2 So, the new ratio = 19/60:19/60:1/5:1/6 |