Naveen and Ghanshyam are partners in a firm sharing profits in the ratio of 3:2. They admitted Daniel as a new partner for 1/4th share. The new profit sharing ratio between Naveen and Ghanshyam will be 2:1. Calculate the New profit sharing ratio of Naveen, Ghanshyam and Daniel :
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 2:1:1.
Old ratio = 3:2 (Naveen and Ghanshyam)
Daniel admits = 1/4th share
New ratio between Naveen and Ghanshyam = 2:1
Total share of firm = 1
Daniel share = 1/4
Remaining share = 1- 1/4
= 3/4
This 3/4 is for Naveen and Ghanshyam in ratio 2:1.
Naveen share = 3/4 x 2/3
= 6/12
Ghanshyam share = 3/4 x 1/3
= 3/12
Daniel share = 1/4 or 3/12
New ratio = 6/12 : 3/12 :3/12
= 6:3:3
= 2:1:1