- 1 Marks
Question
Sanni and Ajayi are in partnership, sharing profits or losses equally. If Kunle is admitted as a new partner to take one-fifth as his share, what is the new profit or loss sharing ratio?
Answer
2:2:1 or 2/5:2/5:1/5
Explanation:
The correct answer is 2:2:1 or 2/5:2/5:1/5 because when Kunle is admitted with a one-fifth share, the remaining four-fifths is shared equally between Sanni and Ajayi, resulting in the new ratio.
- Tags: Admission of New Partner, Partnership, Profit Sharing
- Level: Level 1
- Uploader: Theophilus