Lesson eLearning

Partners X and Y have capital ₹20,000 and ₹30,000 respectively and profit share 2:3. A new partner Z joins with ₹15,000 capital. If the new profit share ratio is to be in proportion to the capital amounts after admission, what is the ratio of profit shares among X, Y, and Z?

easy MCQ 1 mark Class 12 · Accountancy · Reconstitution of Partnership Firm Admission of Partner
  1. 7:6:5
  2. 7:6:3
  3. 5:4:3
  4. 4:3:2
Answer
7:6:3

The correct answer is 7:6:3 — Simplify by dividing each term by 5: 7 : 6 : 3.

Step-by-step solution

  1. Compute new capital for each partner: X: ₹20,000 + Z: ₹15,000 = ₹35,000; Y: ₹30,000; Z: ₹15,000.
  2. Write the ratio of new capitals: 35 : 30 : 15.
  3. Simplify by dividing each term by 5: 7 : 6 : 3.
Common mistake: Assuming the old profit share ratio remains unchanged after admission

Concept tested: Profit share proportion to capital

Published · How this solution was prepared and checked

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