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A and B share profits in the ratio \(3:2\). New partner C is admitted for a \(\frac{1}{6}\) share of profits, and A’s new share is \(\frac{2}{5}\). What will be B’s new share of profits?

Answer and explanation

Correct answer: \(\frac{13}{30}\)

The new profit-sharing shares of A, B and C must add up to 1. Therefore, B’s new share is \(1-\frac{2}{5}-\frac{1}{6}=1-\frac{12}{30}-\frac{5}{30}=\frac{13}{30}\). The original \(3:2\) ratio is not directly needed because A’s and C’s new shares are already given. Exam tip: Find the remaining partner’s share by subtracting all the specified new shares from the total share of 1.

Related tags

New Share CalculationAdmission Of PartnerGoodwill AccountingProfit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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