Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

J and K divide profit in the ratio of 5:3. L is admitted for 1/5 share in the business. What would be their new sharing ratio ?

user-image
Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/08/10
Umer Sharif
by Umer Sharif , Consultant Lead Financial, Functional, Implementation of Infor ERP Syteline ‚ Eccountant & SmartHCM. , Bin Rasheed Technology Pvt Ltd.

agreed with all answers.5:3:2

Suppose the amount is100.

Here j:k=5:3

it means j=50,k=30

now L=100/5=20,

so share would be.5:3:2

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

option (C)5:3:2 is the answer.

j' share =5/8, k's share =3/8, before admitting L into the businees.

After admitting by giving the share to L is1/5 share, left out share is4/5, which is the combined share of J and K.

after admitting L,  J'share will be (5/8)*(4/5)=1/2

after admitting L, K' share will be (3/8)(4/5) =3/10

now the share's of J , K and L are (1/2) : (3/10) : (1/5) =5 :3:2. so option (C) is the correct answer. Thanks.

 

ADITYA SHARMA
by ADITYA SHARMA , Manager , DELOITTE AND TOUCHE

option C is correct             answer 

محمد التويجري
by محمد التويجري , Accountant , SACC

The correct answer is C 5 :3 :2 

More Questions Like This