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Anil and Sunil share profits in the ratio 3:2. Kajal is admitted for a 1/4 share of the profits. Anil and Sunil each sacrifice 1/8 of the profit. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: Anil : Sunil : Kajal = 19 : 11 : 10

Since the old ratio is 3:2, Anil’s old share is 3/5 and Sunil’s old share is 2/5. Anil’s new share = 3/5 − 1/8 = 19/40, while Sunil’s new share = 2/5 − 1/8 = 11/40. Kajal’s share, 1/4, equals 10/40. Therefore, the new ratio is 19/40 : 11/40 : 10/40 = 19:11:10. Exam tip: The incoming partner’s share should equal the total sacrifice made by the old partners; here, 1/8 + 1/8 = 1/4.

Related tags

Admission Of PartnerNew Profit Sharing RatioSacrifice RatioPartnership AccountsClass 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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