Question:medium

R and S are partners in a 4:1 ratio. T is admitted and gets 1/5 share, equally from both. Find the new ratio.

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When a new partner is admitted, the existing partners' shares are diluted to accommodate the new partner’s share. The shares are adjusted based on the existing profit-sharing ratio.
Updated On: Mar 26, 2026
  • 16:4:5
  • 8:2:5
  • 4:1:5
  • 3:2:5
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The Correct Option is A

Solution and Explanation

The current profit-sharing ratio between R and S is 4:1. Upon T's admission, T will receive 1/5 of the total share, which will be divided equally between R and S.

- T's allocated share is \( \frac{1}{5} \).

The remaining share to be distributed between R and S is \( 1 - \frac{1}{5} = \frac{4}{5} \).

This remaining \( \frac{4}{5} \) share is to be divided between R and S in their existing ratio of 4:1.

The sum of the ratio parts is \( 4 + 1 = 5 \).

R's new share is calculated as:

\[\frac{4}{5} \times \frac{4}{5} = \frac{16}{25}\]

S's new share is calculated as:

\[\frac{1}{5} \times \frac{4}{5} = \frac{4}{25}\]

Consequently, the new profit-sharing ratio among R, S, and T is:

\[R : S : T = \frac{16}{25} : \frac{4}{25} : \frac{1}{5} = 16 : 4 : 5\]

The revised profit-sharing ratio is therefore 16:4:5.
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