Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A and B are in partnership sharing profits and losses as 3 : 2. C is admitted for 1/4th share. Afterwards, D enters for 20 paisa in the rupee. The new profit sharing ratio after D's admission will be :

Options:

9:6:5:5

6:9:5:5

3:2:4:5

3:2:5:5

Correct Answer:

9:6:5:5

Explanation:

A's New Share after admission of C= 3/5*3/4=9/20
B's New Share after admission of C=2/5*3/4=6/20
NPR after admission of C= 9:6:5
Share of D= 20 paisa means 20/100 or 1/5
A's New share after D's Admission=9/20*4/5=36/100
B's Share after D's Admission= 6/20*4/5=24/100
C's New Share after admission of D= 5/20*4/5=20/100
D 's Share= 20/100
NPSR=36:24:20:20 i.e.9:6:5:5