Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

Arvind and Vinod were partners sharing profits and losses in the ratio of 5 : 4. They admitted Sunil as a new partner. Arvind sacrificed 1/5th of his share and Vinod gave 1/18th of his share in favour of Sunil. Determine new profit sharing ratio between Arvind, Vinod and Sunil.

Options:

32 : 35 : 23

36 : 34 : 11

8 : 7 : 3

1 : 1 : 1

Correct Answer:

36 : 34 : 11

Explanation:

The correct answer is Option 2- 36 : 34 : 11

Old ratio =  (Arvind and Vinod)
Sunil admitted  as a new partner

Arvind sacrifice = 5/9 x 1/5
                       = 5/45 or 1/9

Vinod sacrifice = 4/9 x 1/18
                      = 2/81

New share of Arvind = 5/9 - 5/45
                              = (25-5)/45
                              = 20/45 or 4/9

New share of Vinod = 4/9 - 2/81
                             = ( 36-2)/81
                             = 34/81

Share of sunil = 1/9 + 2/81
                     = (9+2)/81
                     = 11/81

New ratio = 4/9 : 34/81 : 11/81
              = 36/81 : 34/81 :11/81
              = 36:34:11