Salim and Sultan are partners sharing profit and loss in the ratio of 5 and 3. Partner Shihab wasadmitted in to a firm, which he acquires 3/8th share from partner Salim and 2/8th share fromPartner Sultan. So, the new profit sharing ratio will be:O a. 30 : 12: 21O b. 25 : 18 : 21O c. 25 : 12: 16O d. 21:16: 25

When a new partner is admitted the old partners need to sacrifice some amount their profit share to…

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= new profit sharing ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Salim and Sultan are partners sharing profit and loss in the ratio of 5 and 3. Partner Shihab was
admitted in to a firm, which he acquires 3/8th share from partner Salim and 2/8th share from
Partner Sultan. So, the new profit sharing ratio will be:
O a. 30 : 12: 21
O b. 25 : 18 : 21
O c. 25 : 12: 16
O d. 21:16: 25

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