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The old ratio is 2:1. A new partner receives 1/4 of the first partner's share and 1/3 of the second partner's share. What is the new ratio?

Answer and explanation

Correct answer: 9:4:5

The governing concept is that a fraction stated as being taken from a partner applies to that partner’s old profit share, not to the whole profit. In the old ratio 2:1, the first partner’s share is 2/3 and the second partner’s share is 1/3. The first partner sacrifices (1/4) × (2/3) = 1/6, so the retained share is 2/3 − 1/6 = 1/2. The second sacrifices (1/3) × (1/3) = 1/9, so the retained share is 1/3 − 1/9 = 2/9. The incoming partner receives 1/6 + 1/9 = 5/18. Expressing all shares in eighteenths gives 9/18:4/18:5/18, or 9:4:5. Therefore, option A is correct; the other options result from applying the fractions incorrectly or failing to reduce the shares to a common denominator.

Related tags

Fraction Of Partner ShareAdmissionNew RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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