JAMB Accounts Principles of Accounts 2018 Paper

Concept:When a new partner is admitted, the old partners sacrifice part of their old shares in favour of the new partner.The remaining balance of profit is shared using the old profit-sharing ratio unless a new ratio is stated.Explanation:Sule and Ahmed originally share profit equally, so each receives $\frac{1}{2}$ of the profit.Khadija is admitted with a $\frac{1}{5}$ share of the total profit.The fraction of profit left for Sule and Ahmed is:$1 - \frac{1}{5} = \frac{4}{5}$.Since Sule and Ahmed shared equally before, the remaining $\frac{4}{5}$ is divided equally between them.Sule's new share:$\frac{4}{5} \times \frac{1}{2} = \frac{2}{5}$.Ahmed's new share:$\frac{4}{5} \times \frac{1}{2} = \frac{2}{5}$.Khadija's share remains $\frac{1}{5}$.Check the total:$\frac{2}{5} + \frac{2}{5} + \frac{1}{5} = \frac{5}{5} = 1$.The same ratio applies to losses as well.Answer:The new profit or loss sharing ratio is:Sule $\frac{2}{5}$, Ahmed $\frac{2}{5}$, Khadija $\frac{1}{5}$.This correct ratio is not listed among the given options.