Multiple choice

Mr. L and Mr. M are partners in a partnership firm sharing profits and losses in the ratio 5 : 3. Mr. N wanted to join their business as a partner. He purchased 50% share in the future profits of the firm upon agreement by Mr. L and Mr. M. He obtained half of his required share directly from Mr. L and the remaining share from Mr. L and Mr. M in their existing ratios. Find the new profit sharing ratio of the partners.

  1. 7 : 9 : 15

  2. 7 : 9 : 16

  3. 4 : 1 : 10

  4. 1 : 4 : 11

  5. 5 : 7 : 10
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mr. N gets 1/2 share. He takes 1/4 from L and 1/4 from L and M in 5:3 ratio. L gives 1/4 + (5/8 * 1/4) = 1/4 + 5/32 = 13/32. M gives (3/8 * 1/4) = 3/32. Remaining shares: L = 5/8 - 13/32 = 7/32. M = 3/8 - 3/32 = 9/32. Ratio L:M:N = 7:9:16.

AI explanation

Assume the total profit of the firm is 40 units, shared by Mr. L and Mr. M in the ratio of 5 to 3, which means Mr. L gets 25 units and Mr. M gets 15 units. Mr. N purchases a 50% share of the future profits, equaling 20 units, taking half of this requirement (10 units) directly from Mr. L. Mr. L's remaining 10 units and Mr. M's 15 units are treated as a combined pool of 25 units, and the remaining 10 units for Mr. N are taken from them in their existing ratio of 5 to 3. Mr. L gives away 6.25 units and Mr. M gives away 3.75 units, leaving Mr. L with 8.75 units, Mr. M with 11.25 units, and Mr. N with 20 units. To eliminate decimals, multiply the values by 4 to find the new profit sharing ratio of 35 to 45 to 80, which simplifies to 7 to 9 to 16.

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