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Deepak and Bhavesh share profits in the ratio of 4:5. Kamal is admitted as a partner for a 1/9 share of profits, which is surrendered by the old partners in their old ratio. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: Deepak : Bhavesh : Kamal = 32:40:9

After admitting Kamal for a 1/9 share, the old partners retain 8/9 of the profits. This remaining share is divided between Deepak and Bhavesh in their old ratio of 4:5. Thus, Deepak’s share is 8/9 × 4/9 = 32/81, and Bhavesh’s share is 8/9 × 5/9 = 40/81. Kamal’s share, 1/9, equals 9/81. Therefore, the new ratio is 32:40:9. Option B is incorrect because it does not reduce the old partners’ shares. Exam tip: When the incoming partner’s share is surrendered in the old ratio, distribute the remaining profit in that same ratio.

Related tags

Admission Of PartnerNew Profit Sharing RatioOld RatioPartnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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