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Seema and Geeta share profits in the ratio 2:3. Radha is admitted for a 1/4 share. Seema sacrifices 1/8 of her old share and Geeta sacrifices the balance. What is the new ratio?

Answer and explanation

Correct answer: 7:8:5

The key concept is that a fraction of an old partner’s share is calculated from that partner’s actual old share. The old ratio 2:3 gives Seema 2/5 and Geeta 3/5. Seema sacrifices 1/8 of her old share, so her sacrifice is (1/8) × (2/5) = 1/20. Radha’s total share is 1/4, therefore Geeta’s balance sacrifice is 1/4 − 1/20 = 5/20 − 1/20 = 1/5. Seema retains 2/5 − 1/20 = 8/20 − 1/20 = 7/20. Geeta retains 3/5 − 1/5 = 2/5 = 8/20. Radha receives 1/4 = 5/20. Consequently, the new ratio is 7:8:5, which is option B. The other choices do not reflect both the fractional sacrifice and the balance sacrifice.

Related tags

Fraction-Of-Old-ShareBalance-SacrificeNew-RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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