A, B and C are partners sharing profits in the ratio of 3:2:1. D is admitted into firm for 1/4 th share of profit, which he gets 1/8 from A and 1/8 from B. Calculated new sharing ratio of all the partners
Correct Answer :
9:5:4:6
Solution :
The correct option is 9:5:4:6.
Here is the step-by-step calculation to find the new profit-sharing ratio of all partners:
1. Identify the Old Profit-Sharing Ratio:
The old profit-sharing ratio of partners A, B, and C is given as 3:2:1.
Therefore, their individual old shares are:
Share of A =
Share of B =
Share of C =
2. Calculate the Share Sacrificed by Old Partners:
D is admitted for a th share, which he acquires:
From A =
From B =
(Note: C does not sacrifice any portion of his share for D.)
3. Calculate the New Shares of Partners:
New Share = Old Share - Share Sacrificed
For A:
New Share of A =
To subtract these, we find the Least Common Multiple (LCM) of 6 and 8, which is 24.
New Share of A =
For B:
New Share of B =
Using the LCM of 24:
New Share of B =
For C:
C did not make any sacrifice, so his share remains unchanged:
Share of C =
To express C's share with the common denominator of 24, we multiply the numerator and denominator by 4:
Share of C =
For D:
Share of D =
To express D's share with the common denominator of 24, we multiply the numerator and denominator by 6:
Share of D =
4. Determine the New Profit-Sharing Ratio:
Comparing the new shares of all partners (A, B, C, and D):
A : B : C : D =
Thus, the new profit-sharing ratio is 9:5:4:6.
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