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Old partners share profits in the ratio 5:2:3. A new partner takes 1/10 from the first partner and 1/5 from the third partner. What is the new ratio?

Answer and explanation

Correct answer: 4:2:1:3

The old shares are 5/10, 2/10 and 3/10. The new partner takes 1/10 from the first, leaving 4/10, and takes 1/5=2/10 from the third, leaving 1/10. The second partner is unchanged at 2/10. The new partner receives 1/10+2/10=3/10. Hence the new ratio is 4:2:1:3, so option A is correct.

Related tags

New Profit Sharing RatioAdmissionSelective SacrificeRatio CalculationNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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