X and Y are sharing profits and losses in the ratio of 3 : 2. They admit Z as a partner and give him 2/10th share in the profits. The new profit sharing ratio will be
X and Y are sharing profits and losses in the ratio of 3 : 2. They admit Z as a partner and give him 2/10th share in the profits. The new profit sharing ratio will be
a) 12 : 8 : 5
b) 3 : 2 : 2
c) 3 : 2 : 5
d) 2 : 1 : 2
Anurag Pathak Changed status to publish May 30, 2023
Ans – a)
Explanation:-
Old ratio of X and Y = 3 : 2
Z admitted for 2/10 share
Remaining share = 1 – 2/10 = 8/10
Remaining share would be shared by old partners in their old profit sharing ratio i.e. 3 : 2
X’s new share = 8/10 × 3/5 = 24/50
Y’s new share = 8/10 × 2/5 = 16/50
New Profit sharing ratio after making base equal
24/50 : 16/50 : 2/10 × 5/5 = 24/50 : 16/50 : 10/50
24 : 16 :10 = 12 : 8 : 5
Anurag Pathak Changed status to publish May 30, 2023
