Question

Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:

• A. 2:1:1
• B. 11:4:5
• C. 3:3:2
• D. 7:5:4

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 B

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