Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4 : 3. They admitted Mohan as a new partner. The profit sharing ratio of Ramesh, Suresh and Mohan will be 2 : 3 : 1. Choose the correct option with regards to the gain or sacrifice of old partner-

Options:

Ramesh's sacrifice = 10/42

Ramesh's sacrifice = 7/42

Suresh's sacrifice = 3/42

Suresh's sacrifice = 10/42

Correct Answer:

Ramesh's sacrifice = 10/42

Explanation:

The correct answer is Option (1) → Ramesh's sacrifice = 10/42

  • Old ratio (Ramesh : Suresh) = 4 : 3 → Ramesh = 4/7, Suresh = 3/7

  • New ratio (Ramesh : Suresh : Mohan) = 2 : 3 : 1 → Total = 6 parts 

                 → Ramesh = 2/6 = 1/3, Suresh = 3/6 = 1/2, Mohan = 1/6

  • Sacrifice/Gain=Old ShareNew Share
  • Sacrifice of Rramesh : 4/7 - 1/3 = 5/21 = 10/42
  • Sacrifice of Suresh = 3/7 - 1/2 = -1/14 = -3/42
  • Since the result is negative, Suresh gains -3/42 of the profit.