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A new partner receives a 2/9 share from old partners in the ratio 2:3. If the old ratio was 5:4, what is the new ratio?

Answer and explanation

Correct answer: 21:14:10

The governing concept is that the incoming partner's share is sacrificed by old partners in the stated sacrifice ratio, while the old ratio determines their original shares. The old shares are 5/9 and 4/9. The total sacrifice is 2/9 in the ratio 2:3, so the first sacrifices (2/5)(2/9) = 4/45 and the second sacrifices (3/5)(2/9) = 2/15 = 6/45. The first retains 25/45 − 4/45 = 21/45, and the second retains 20/45 − 6/45 = 14/45. The new partner has 2/9 = 10/45. Thus the new ratio is 21:14:10, option A.

Related tags

Sacrifice RatioOld RatioNew RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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