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JAMB Principles of Accounts 2020 Question 38

Question 38

Partnership Admission, Retirement and Dissolution

Kola and Sunday are in partnership sharing profits and losses equally. If Kemi is admitted as a new partner to take 1/5 as her share, what is the new profit or loss sharing ratio?

  1. A.Kola 1/3, Sunday 1/3 and Kemi 1/3
  2. B.Kola 1/5, Sunday 1/5 and Kemi 3/5
  3. C.Kola 2/5, Sunday 1/5 and Kemi 2/5
  4. D.Kola 2/5, Sunday 2/5 and Kemi 1/5
Show the answer and explanation

Answer: D (Kola 2/5, Sunday 2/5 and Kemi 1/5)

Explanation

Kemi takes 1/5, leaving 4/5 to be shared equally: 2/5 each for Kola and Sunday.