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 1/4th share in the profits, which she acquired wholly from Gupta. 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:

When a new partner is admitted, adjust the ratios of the existing partners accordingly if the new partner acquires the share from one specific partner.

Answer 1

The Correct Option is B

Preeti's share = \(\frac{1}{4}\) (acquired entirely from Gupta).
Gupta's remaining share = \(4/5 - 1/4 = 11/20\).
Sharma's share remains unchanged = \(1/5 = 4/20\).
Preeti's share = \(1/4 = 5/20\). New profit sharing ratio:
Gupta : Sharma : Preeti = \(11:4:5\).