Q4. B

M/s. Matra LLC runs the partnership firm in Oman with different businesses. The firm likes to admit one more partner in to their partnership for reaching the unreached segment of target audience in the country. Hence the firm asks suggestions from you to choose the following two different alternatives Viz.,

Assume X and Y are partners sharing profits in the ratio of 3:5 and admitting Z for 1/5th share of future profits, which will be acquired as 3/16th from X and 1/16^th from Y or

Assume X and Y are partners sharing profits in the ratio of 1:3 and admitting Z as a new partner, acquires 1/4th of X s share and 2/4 of Ys Share during his admission.

Calculate New ratios and Sacrificing ratios and suggest the best alternative for the new partner.

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