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Saral and Taral share profits in the ratio 6:4. Garima is admitted for a 1/5 share, taken from the old partners in their old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: Saral : Taral : Garima = 12 : 8 : 5

The old ratio of Saral and Taral is 6:4, or 3:2. Garima receives 1/5 of the total profit, so the old partners retain 4/5. Since the sacrificed share is taken in the old ratio, Saral receives 3/5 of the retained 4/5 = 12/25, while Taral receives 2/5 of 4/5 = 8/25. Garima receives 1/5 = 5/25. Thus the new ratio is 12:8:5, which sums to 25 and represents the whole profit. Therefore option A is correct. Option B fails to reduce the old partners' shares, while C and D do not preserve the required old-ratio sacrifice.

Related tags

Admission Of PartnerNew Profit-Sharing RatioPartnership AccountsNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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