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Old partners share profits in the ratio 2:3:5. A new partner takes a 1/4 share. The first partner's new share is 1/5 and the second partner's new share is 1/4. What is the third partner's new share?

Answer and explanation

Correct answer: 3/10

The governing concept is conservation of the whole profit share: the new shares of every old partner and the incoming partner must add to 1. The first partner has 1/5, the second has 1/4, and the new partner has 1/4. Therefore the third partner receives the residual share, calculated as 1 − 1/5 − 1/4 − 1/4. Taking denominator 20 gives 20/20 − 4/20 − 5/20 − 5/20 = 6/20, which simplifies to 3/10. Thus option A is correct. The old ratio 2:3:5 is not required for this residual calculation because the question already supplies the relevant new shares. Options B, C and D would make the total of all four shares different from one.

Related tags

Missing-ShareNew-Profit-Sharing-RatioFraction-CalculationNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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