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Ashish and Bablu share profits in the ratio 4:5. Chanchal is admitted for a 1/9 share, which is taken entirely from Ashish’s share. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: Ashish : Bablu : Chanchal = 3:5:1

The old ratio 4:5 has a total of 9 parts, so Ashish’s old share is 4/9 and Bablu’s is 5/9. Chanchal’s 1/9 share is taken entirely from Ashish; therefore, Ashish’s new share is 4/9 − 1/9 = 3/9. Bablu’s share remains 5/9, while Chanchal receives 1/9. Hence, the new ratio is 3:5:1. Option B is incorrect because it adds Chanchal’s share without reducing Ashish’s share. Exam tip: When a new partner’s share is surrendered entirely by one old partner, reduce only that partner’s share.

Related tags

Admission Of PartnerNew Profit Sharing RatioPartnership AccountsClass 12 AccountancyReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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