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The old ratio is 7:2:1. A new partner takes a 1/5 share, and the old partners' new ratio is 4:3:1. What is the complete new ratio?

Answer and explanation

Correct answer: 16:12:4:8

The governing concept is that the old partners’ stated new ratio is an inter se ratio, not the complete ratio including the incoming partner. Since the new partner receives 1/5, the old partners together retain 4/5. Their inter se ratio 4:3:1 totals 8, so their individual shares are (4/5)(4/8) = 2/5, (4/5)(3/8) = 3/10, and (4/5)(1/8) = 1/10. The incoming partner’s share is 1/5. Thus the complete shares are 2/5:3/10:1/10:1/5. Multiplying by 40 gives 16:12:4:8. Therefore option A is correct. Option B incorrectly treats the inter se ratio as the complete ratio, while C and D do not preserve the total 4/5 share of the old partners.

Related tags

Complete New RatioInter Se RatioAdmission Of PartnerNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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