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The old ratio is 4:3:2. A new partner receives a 1/9 share only from the third partner. What is the new ratio?

Answer and explanation

Correct answer: 4:3:1:1

The governing concept is sole sacrifice: when the incoming partner obtains the entire share from one existing partner, only that partner's share is reduced. In the old ratio 4:3:2, the partners' shares are 4/9, 3/9 and 2/9. The third partner sacrifices 1/9, so the third partner retains 2/9 − 1/9 = 1/9. The first and second partners remain at 4/9 and 3/9, while the new partner receives 1/9. Therefore the new ratio is 4/9:3/9:1/9:1/9, or 4:3:1:1 after removing the common denominator. Hence option A is correct.

Related tags

Sole SacrificeNew PartnerNew RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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