A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in ₹20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are ₹45,000 and ₹15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Determine the new profit sharing ratio.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 2:1:1
When nothing is said about how the new partner acquires his share, he is taken to acquire it from the old partners in their old ratio. The capitals given in the question are needed only for the later capital adjustment, not for the ratio.
C’s share = 1/4
Remaining share = 1 − 1/4 = 3/4
A’s new share = 3/4 × 2/3 = 6/12
B’s new share = 3/4 × 1/3 = 3/12
C’s new share = 1/4 = 3/12
New ratio = 6:3:3 = 2:1:1
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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