Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

P, Q, R are partners sharing profits in 2 : 2 : 1, they admitted S for 1/8 share which he acquired entirely from P. Calculate new profit sharing ratio?

Options:

11 : 16 : 8 : 5

1 : 1 : 1 : 1

2 : 2 : 1 : 1

2 : 2 : 1 : 8

Correct Answer:

11 : 16 : 8 : 5

Explanation:

The correct answer is Option (1) → 11 : 16 : 8 : 5

Old ratio of P, Q & R= 2:2:1
S admitted with 1/8
1/8 share of S is given by P means P sacrifices 1/8 from his share.
P's new share = 2/5 - 1/8
                     =(16-5)/40
                     = 11/40

Q's new share = 2/5
                     = 16/40

R's new share = 1/5
                     = 8/40

S's share = 1/8
              = 5/40

So, new ratio = 11/40 : 16/40: 8/40: 5/40
                    = 11:16:8:5