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Rahul, Sameer and Tanay share profits in the ratio 7:5:3. Mohit is admitted for a 1/5 share of profits, and the old partners sacrifice in their old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 28:20:12:15

Mohit receives 1/5 of the profits, leaving 4/5 for the old partners. They divide this remainder in their old ratio, 7:5:3: its 15 total parts give Rahul 28/75, Sameer 20/75 and Tanay 12/75. Mohit's share is 1/5, or 15/75. Thus, the new ratio is 28:20:12:15.

Related tags

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

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