Multiple choice

X, Y and Z are three partners sharing profits and losses in the ratio, 10 : 6 : 2. A was admitted for 1/10th share. The new profit sharing ratio will be:

  1. 10 : 6 : 2 : 1

  2. 5 : 3 : 2 : 1

  3. 5 : 3 : 1 : 1

  4. 10 : 6 : 2 : 4

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a new partner A is admitted for 1/10th share, the remaining 9/10 is distributed among the original partners X, Y, Z in their old ratio 10:6:2. The new ratio becomes 5:3:2:1 where A gets 1 part and the original partners sacrifice proportionally from their shares.