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Two old partners share profits in the ratio 11:4. A new partner takes a 1/5 share, receiving 1/15 from the second partner and the balance from the first partner. What is the new ratio?

Answer and explanation

Correct answer: 9:3:3

The governing idea is that the incoming partner’s share is divided among old partners according to the specified sacrifices. The old ratio 11:4 totals 15, so the first partner has 11/15 and the second has 4/15. The new partner needs 1/5 = 3/15. The second partner sacrifices 1/15, so the first partner must sacrifice the balance, 3/15 − 1/15 = 2/15. The first partner’s new share is 11/15 − 2/15 = 9/15. The second partner’s new share is 4/15 − 1/15 = 3/15, and the incoming partner receives 3/15. Therefore the new ratio is 9:3:3, which is option A. It may be simplified to 3:1:1, but option A is the equivalent ratio presented.

Related tags

Specific-SacrificeNew-RatioAdmission-Of-PartnerNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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