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Abhi and Ruchi share profits in the ratio 2:1. Khushi is admitted as a partner for a 1/3 share of profits, which is sacrificed by Abhi and Ruchi in their old profit-sharing ratio. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: Abhi : Ruchi : Khushi = 4:2:3

Khushi’s 1/3 share is sacrificed by Abhi and Ruchi in their old ratio of 2:1. Thus, Abhi sacrifices 1/3 × 2/3 = 2/9, while Ruchi sacrifices 1/3 × 1/3 = 1/9. Abhi’s new share is 2/3 − 2/9 = 4/9, Ruchi’s new share is 1/3 − 1/9 = 2/9, and Khushi receives 1/3 = 3/9. Therefore, the new ratio is 4:2:3. Exam tip: If the incoming partner’s share is given by the old partners in their old ratio, multiply that share by each partner’s old fraction to find the sacrifice.

Related tags

AdmissionNew-Profit-Sharing-RatioSacrifice-RatioPartnershipClass-12New Profit Sharing RatioReconstitution Admission Of A PartnerAccountancy

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