wiz-icon
MyQuestionIcon
MyQuestionIcon
2
You visited us 2 times! Enjoying our articles? Unlock Full Access!
Question

A and B are partners sharing profits in the ratio of 4:1. C is admitted for 1/4th share in profits which he acquires wholly from A. The new profit sharing ratio will be _________.

A
4:11:5
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
10:5:5
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
8:7:5
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
11:4:5
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is C 11:4:5
Old share (A and B) = 4 : 1
C is admitted for 1/4 Share
A sacrifices in favour of C = 1/4
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (4/5) - (1/4) = 11/20
B's new share = (1/5) - 0 = 1/5 or 4/20
C's share = 1/4 or 5/20
Therefore, new profit sharing ratio of A, B and C = 11 : 4 : 5

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Retirement of a Partner- I
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon