Partners L and M have capital amounts of ₹100,000 and ₹200,000 respectively and share profit in the ratio 2:3. A new partner N joins with a capital of ₹80,000 and will receive interest at 4 % per annum for 4 months before admission. After admission, the profit‑sharing ratio becomes L : M : N = 4 : 3 : 3. The partnership makes a profit of ₹250,000 during the year of admission. Calculate (i) the interest payable to N and (ii) the profit share of each partner after admission.

Step-by-step solution

1. 1. Compute interest to N: ₹80,000 × 4 % × (4/12) = ₹1,066.67, round to ₹1,067.
2. 2. Deduct this interest from total profit: ₹250,000 – ₹1,067 = ₹248,933.33.
3. 3. Total parts in new ratio = 4 + 3 + 3 = 10.
4. 4. L’s share = (4/10) × ₹248,933.33 ≈ ₹99,573.
5. 5. M’s share = (3/10) × ₹248,933.33 ≈ ₹74,680.
6. 6. N’s share = (3/10) × ₹248,933.33 ≈ ₹74,680.
7. 7. Provide the final figures.

Concept tested: Interest calculation & profit‑sharing post‑admission

Published 13 October 2026 · How this solution was prepared and checked