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. 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:

For profit-sharing changes, always calculate the proportion of the total and ensure the new shares add up to 1 or the total profit.

Answer 1

The Correct Option is B

The total profit is distributed as \(4:1\) between Gupta and Sharma. Preeti's \(\frac{1}{4}\) share is taken entirely from Gupta's share. - Gupta's original share = \(\frac{4}{5}\). - Gupta gives \(\frac{1}{4}\) of total profits, i.e., \(\frac{1}{4}\) to Preeti. New shares: \[ \text{Gupta: } \frac{4}{5} - \frac{1}{4} = \frac{16}{20} - \frac{5}{20} = \frac{11}{20}. \] \[ \text{Sharma: } \frac{1}{5} = \frac{4}{20}. \] \[ \text{Preeti: } \frac{1}{4} = \frac{5}{20}. \] New profit sharing ratio = \(11:4:5\). \vspace{0.5cm} \hrule \vspace{0.5cm}