Question

X and Y are partners sharing profits in the ratio of 3:2. Z admitted as a new partner with 1/5th share. The new profit sharing ratio will be .

• A. 12:5:8
• B. 12:7:5
• C. 5:8:12
• D. 12:8:5

Answer 1

The correct option is D 12:8:5

Let total profit be = 1,
Share given to Z = 1/5,
Remaining share = 1- 1/5 = 4/5.
Now, the old partners will share this remaining profit in their old profit sharing ratios:
X's share = 3/5 of 4/5 = 12/25,
Y's share = 2/5 of 4/5 = 8/25,
Z's share = 1/5 x 5/5 = 5/25.
Thus, the new profit sharing ratio of X, Y and Z will be = 12:8:5.