A , B and C are partners in a firm sharing profits in the ratio of 4 : 3 : 2 . They admit D as a new partner. A , B and C each surrendered 1/3rd of th - Accountancy MCQ Competitive Exams 2026 | ExamTest.live

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A, B and C are partners in a firm sharing profits in the ratio of 4 : 3 : 2 . They admit D as a new partner. A, B and C each surrendered \frac{1}{3} rd of their shares in favour of D . Calculate the new profit sharing ratio of A, B, C and D .

Solution & Step-by-step Explanation

Old shares are A = \frac{4}{9}, B = \frac{3}{9}, and C = \frac{2}{9} . Since each partner surrenders \frac{1}{3} rd of their share, they retain 1 - \frac{1}{3} = \frac{2}{3} rds of their original share. New share of A = \frac{4}{9} \times \frac{2}{3} = \frac{8}{27} New share of B = \frac{3}{9} \times \frac{2}{3} = \frac{6}{27} New share of C = \frac{2}{9} \times \frac{2}{3} = \frac{4}{27} Share of D is the sum of the surrendered components: Share of D = (\frac{4}{9} \times \frac{1}{3}) + (\frac{3}{9} \times \frac{1}{3}) + (\frac{2}{9} \times \frac{1}{3}) = \frac{4 + 3 + 2}{27} = \frac{9}{27} Thus, the new profit sharing ratio of A : B : C : D is: 8 : 6 : 4 : 9

Try it yourself before checking the explanation above.

A, B and C are partners in a firm sharing profits in the ratio of 4 : 3 : 2 . They admit D as a new partner. A, B and C each surrendered \frac{1}{3} rd of their shares in favour of D . Calculate the new profit sharing ratio of A, B, C and D .

8 : 6 : 4 : 9

8 : 6 : 5 : 4

8 : 7 : 6 : 9

8 : 6 : 7 : 9

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