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?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 19:19:12:10.
OLD RATIO IS 1:1 (A&B)
C share is 1/5
D share is 1/6
Total share of C & D = 1/5 +1/6
= (6+5)/30
= 11/30
Let total share of the firm = 1
Remaining share after C & D = 1-11/30
= 19/30
This 19/30 share is distributed between old partners in their old ratio i.e. equally.
A's NEW SHARE = 19/30 X 1/2
= 19/60
B's NEW SHARE = 19/30 X 1/2
= 19/60
So, the new ratio = 19/60:19/60:1/5:1/6
= 19/60 : 19/60 :12/60:10/60
= 19:19:12:10