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The old ratio is 4:3:3. A new partner gets a 1/4 share. The old partners' new shares are maintained in the ratio 3:2:1. What is the new ratio?

Answer and explanation

Correct answer: 9:6:3:6

The governing concept is that the incoming partner’s share is first deducted from the total profit, and the balance is distributed among the old partners in their specified new inter se ratio. The new partner receives 1/4, so the old partners together retain 3/4. Their ratio 3:2:1 has a total of 6. Therefore, their individual shares are (3/4)(3/6) = 3/8, (3/4)(2/6) = 1/4, and (3/4)(1/6) = 1/8. The incoming partner receives 1/4. Thus the complete ratio is 3/8:1/4:1/8:1/4. Multiplying by 8 gives 3:2:1:2, and multiplying by 3 gives the equivalent ratio 9:6:3:6. Hence option A is correct. Option B omits the scaling for the retained 3/4, while the other alternatives do not preserve the stated shares.

Related tags

Changed Old RatioAdmissionNew RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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