Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

X and Y are partners sharing profit in the ratio of 3:2. Z was admitted with 1/4 share in profits which he acquires equally from X and Y. The new ratio will be:

Options:

9:6:5

19:11:10

3:3:2

3:2:4

Correct Answer:

19:11:10

Explanation:

The correct answer is option 2- 19:11:10.

X's old share = 3/5
Y's old share = 2/5
Z's share = 1/4

Since Z acquires 1/4 from X and Y equally, half of 1/4, i.e., 1/4 ÷ 2 = 1/8 will be deducted from X's and Y's share.

New share = Old share - Sacrifice

X's  New share = 3/5 - 1/8
                        = (24 - 5)/40
                        = 19/40

Y's New share = 2/5 - 1/8
                       = (16 - 5)/40
                       = 11/40

Z share = 1/4, or 10/40

Therefore, the new profit-sharing ratio = 19/40 : 11/40 : 10/40
                                                              = 19:11:10.