Question

A, B and C were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 3. D was admitted in the firm for 1/6th share. C would retain his original share. The new profit sharing ratio will be:

• A. 12 : 8 : 5 : 5
• B. 21 : 14 : 18 : 12
• C. 21 : 14 : 15 : 10
• D. 2 : 2 : 1 : 1

Hint:

In partnership adjustments, always calculate the new ratios by proportionately deducting the given share from the existing partners' shares.

Answer 1

The Correct Option is C

Gupta’s share after giving 1/4superscript{th} to Preeti: \[ {Gupta’s New Share} = 4/5 - 1/4 = 16/20 - 5/20 = 11/20 \] Sharma’s share remains the same: \[ {Sharma’s Share} = 1/5 = 4/20 \] Preeti’s share is: \[ {Preeti’s Share} = 1/4 = 5/20 \] The new profit-sharing ratio is: \[ 11:4:5 \]