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Question
N & Z are partners sharing profits and losses in the ratio 5:35:3th of the profit. What is the new ratio after S's admission?
N & Z are partners sharing profits and losses in the ratio 5:35:3th of the profit. What is the new ratio after S's admission?
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Solution
The correct option is C 5:3:2
Old ratio (N
and Z) = 5 : 3. S is admitted for
2/10th share of profit
Let the combined share
of all partners after S's admission = 1
Combined share of N
and Z in the new firm = 1 - S's share
= 1 - (2/10)
= 8/10
New ratio = Old ratio
* Combined share of N and Z
N's new share = (5/8)
* (8/10) = 5/10
Z's new share = (3/8)
* (8/10) = 3/10
S's share = 2/10
Therefore, new ratio
of N : Z : S is = 5 : 3 : 2
5:3:2
Old ratio (N and Z) = 5 : 3. S is admitted for 2/10th share of profit
Let the combined share of all partners after S's admission = 1
Combined share of N and Z in the new firm = 1 - S's share
= 1 - (2/10)
= 8/10
New ratio = Old ratio * Combined share of N and Z
N's new share = (5/8) * (8/10) = 5/10
Z's new share = (3/8) * (8/10) = 3/10
S's share = 2/10
Therefore, new ratio of N : Z : S is = 5 : 3 : 2
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