Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A and B are partners sharing profits in the ratio 4 : 3. They admit C as a partner. C gets 25% of A's share and 1/3rd from B. Calculate new profit sharing ratio.

Options:

4 : 3 : 1

10 : 2 : 9

9 : 2 : 10

2 : 10 : 9

Correct Answer:

9 : 2 : 10

Explanation:

The correct answer is Option (3) - 9 : 2 : 10.

Old ratio = 4:3
C admit

A's sacrifice = 25% share
                  = 4/7 x 1/4
                  = 1/7

B's sacrifice = 1/3

C's share = 1/7 + 1/3
               = (3+7)/21
               = 10/21

A's new share = 4/7 - 1/7
                     = 3/7

B's new share = 3/7 - 1/3
                     = (9-7)/21
                     = 2/21

New ratio = 3/7 : 2/21 : 10/21
               = 9/21 : 2/21 : 10/21
               = 9:2:10