Question

Anil and Vishal are partners sharing profits in the ratio of 3:2. They admitted Sumit as a new partner for 1/5 share in the future profits of the firm. The new profit sharing ratio will be:

• A. 8:12:5
• B. 12:8:5
• C. 5:12:8
• D. 5:8:12

Answer 1

The correct option is B 12:8:5

Sumit's share = 1/5

Remaining share = 1 - 1/5 = 4/5

Anil's new share = 3/5 X 4/5 = 12/25

Vishal's new share = 2/5 X 4/5 = 8/25

New profit sharing ratio of Anil, Vishal and Sumit are 12:8:5

Note: It has been assumed that the new partner acquired his share from old partners in old ratio.