JAMB Principles of Accounts 2018 Question 30

Question 30

Partnership Admission, Retirement and Dissolution

Sule and Ahmed are in partnership sharing profits and losses equally. If Khadija is admitted as a new partner to take 1/5^th as her share. What is the new profit or loss sharing?

A.Sule 1/3, Ahmed 1/3 and Khadija 1/3
B.Sule 2/5, Ahmed 2/5 and Khadija 1/5
C.Sule 1/5, Ahmed 1/5 and Khadija 3/5
D.Sule 2/5, Ahmed 1/5 and Khadija 2/5

Show the answer and explanation

Answer: B (Sule 2/5, Ahmed 2/5 and Khadija 1/5)

Explanation

Khadija takes 1/5, leaving 4/5 to be shared equally: 2/5 each for Sule and Ahmed.