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Old partners share profits in the ratio 9:6:5. A new partner is admitted for a 1/10 share, taken entirely from the third partner. What is the new ratio?

Answer and explanation

Correct answer: 9:6:3:2

The governing concept is that a new partner’s share is obtained by reducing the shares of the sacrificing partners, while the non-sacrificing partners retain their old shares. The old ratio 9:6:5 totals 20, so the old shares are 9/20, 6/20 and 5/20. The incoming partner receives 1/10, which is equal to 2/20, and this entire amount is sacrificed by the third partner. Therefore, the first partner remains at 9/20, the second remains at 6/20, and the third becomes 5/20 − 2/20 = 3/20. The incoming partner has 2/20. Hence the new ratio is 9:6:3:2, so option A is correct. The other options either deduct from the wrong partner or fail to preserve the stated total share.

Related tags

Sole-SacrificeNew-RatioAdmission-Of-PartnerPartnership-AccountsNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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