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A and B share profits 3:2. C is admitted for 1/5 share with C bringing in cash for goodwill. New ratio is
A12:8:5
B3:2:1
C5:5:5
D2:3:5
Answer & Solution
Correct answer: A. 12:8:5
1. C's share = 1/5. Remaining share for old partners = 4/5.
2. Distribute 4/5 in old 3:2 ratio → A: 4/5 × 3/5 = 12/25; B: 4/5 × 2/5 = 8/25.
3. C: 1/5 = 5/25. Ratio A:B:C = 12:8:5.
4. Hence (A) is the new ratio.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.3 ¶§3.3_
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