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A, B, C and D share profits in the ratio 1:2:3:4. A dies, and B, C and D acquire A’s share in the ratio 1:2:2. What will be D’s new share?

Answer and explanation

Correct answer: 11/25

The concept is the computation of a surviving partner’s new share when a deceased partner’s share is acquired in a specified ratio. The old total is 10, so A’s share is 1/10. B, C and D acquire it in 1:2:2, whose total is 5; D therefore receives 2/5 × 1/10 = 1/25. D’s old share was 4/10 = 10/25. Adding the acquired portion gives D’s new share as 10/25 + 1/25 = 11/25. Hence option A is correct. Option B is only D’s old share, option C is not D’s acquired portion, and option D equals 1/2, which is greater than the correctly calculated share.

Related tags

Death Of PartnerNew ShareAcquisition RatioNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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