CBSE 2024, Set 3

Question

A, B and C were partners in a firm sharing profits and losses in the ratio of $1/2 : 1/3 : 1/4$. D was admitted in the firm for $1/6$th share. C would retain his original share. The new profit sharing ratio will be : A). 12:8:5:5 B). 21:14:18:12 C). 21:14:15:10 D). 2:2:1:1

Edvaya · Accepted Answer

The correct answer is 21:14:15:10. Ratio of A, B, C = $\frac{1}{2} : \frac{1}{3} : \frac{1}{4} = 6:4:3$. According to the marking scheme, C's original absolute share is taken as $\frac{1}{4}$. Total Profit = 1. D's share = $\frac{1}{6}$. C's retained share = $\frac{1}{4}$. Remaining share for A and B = $ 1 - \frac{1}{6} - \frac{1}{4} = \frac{12 - 2 - 3}{12} = \frac{7}{12} $. A and B share this remaining profit in their old proportion (6:4 or 3:2). A's new share = $ \frac{7}{12} 	imes \frac{3}{5} = \frac{21}{60} $. B's new share = $ \frac{7}{12} 	imes \frac{2}{5} = \frac{14}{60} $. C's share = $ \frac{1}{4} = \frac{15}{60} $. D's share = $ \frac{1}{6} = \frac{10}{60} $. New Profit Sharing Ratio = 21:14:15:10.

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Accountancy > Accounting For Partnership Firms > Admission Of A Partner

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