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Subjects

Accountancy

New Profit Sharing Ratio

In this Class 12 Accountancy topic from Reconstitution – Admission of a Partner, students learn how to determine the new profit-sharing ratio among partners after a new partner joins the firm. The topic explains how the incoming partner’s agreed share affects the existing partners and how the revised ratio is calculated from the old ratio, the new partner’s share, and any agreed sacrifice. Students also practise applying these concepts to partnership adjustment questions accurately.

Hard · Level 2 · 25 questions

Practice questions

01A and B share profits in the ratio 11:9. C is admitted for a 1/5 share of the profits. C’s share is acquired as 3/20 from A and 1/20 from B. What will be the new profit-sharing ratio?

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02A and B share profits in the ratio 5:7. C is admitted as a partner for a 1/6 share of profits. A and B sacrifice in the ratio 2:3 for C. What will be B’s new profit-sharing ratio?

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03A and B share profits in (2:3). C gets (1/4) share. A's new share is (7/20). What was A's part in the sacrificing ratio?

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04A and B share profits in the ratio 1:2. C is admitted to the firm for a 1/6 share. After admission, A’s new profit share is 1/4. What will be B’s new profit share?

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05A and B share profits in the ratio 5:3. The new partner C is admitted for a 3/16 share of profits. A and B sacrifice C’s share in their old profit-sharing ratio. What will be the new profit-sharing ratio?

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06A, B and C share profits in the ratio 3:3:2. D is admitted for a 1/8 share of the total profits. D’s share is acquired equally from A and B, with 1/16 taken from each. What will be the new profit-sharing ratio?

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07A and B share profits in the ratio 3:7. C is admitted for a \(\frac{1}{5}\) share of profits. A and B sacrifice this \(\frac{1}{5}\) share in the ratio 1:3. What will be A’s new profit-sharing share after the sacrifice?

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08A and B share profits in (4:3). C is admitted for (2/7) share. If A and B share the remaining profit equally then what will be the new ratio?

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09A and B share profits in the ratio 6:5. C is admitted for a 1/11 share of profits, which is sacrificed by A and B in their old ratio. What will be the new profit-sharing ratio?

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10A and B share profits in the ratio 3:2. C is admitted as a partner for a 1/5 share of profits. A sacrifices a 1/10 share of profits in favour of C. What will be the sacrificing ratio of A and B?

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11A and B share profits in (5:4). C gets (1/3) share. A and B's new mutual ratio is (2:3). Does A gain or sacrifice?

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12A and B share profits equally. C gets (1/4) share. A and B's new mutual ratio is (2:1). Which old partner gained?

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13A and B share profits in the ratio 2:5. C is admitted for a 1/7 share, which is taken from B. What is the new mutual ratio of A and B?

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14A and B share profits in the ratio 5:1. C is admitted as a partner for a 1/6 share of profits. C’s entire share is acquired equally from A and B, that is, 1/12 from each. What will be B’s new share of profit?

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15A and B share profits in the ratio 7:3. They admit C for a 1/5 share of profits. A and B sacrifice this share in the ratio 4:1, respectively. What is the new profit-sharing ratio of A, B and C?

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16A and B share profits in the ratio 3:4. C is admitted as a partner for a 2/7 share of profits. If B’s new share is 3/7, what will be A’s new share of profits?

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17A and B share profits in the ratio 4:5. C is admitted for a 1/9 share. A sacrifices 1/18. What will be the new ratio?

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18A B and C share profits in (5:4:3). D gets (1/6) share and D's share is sacrificed by all old partners in old ratio. What will be the new ratio?

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19A and B share profits in the ratio 8:7. C is admitted as a partner and is given 1/5 of the total profit. C’s share is contributed by taking 1/10 each from A and B. What will be the new profit-sharing ratio of A, B and C?

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20A and B share profits in the ratio 2:3. C is admitted as a partner for a \(\frac{1}{4}\) share of profits. If the new mutual ratio of A and B is 3:2, which partner will gain?

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21A and B share profits in the ratio 6:4. C is admitted for a 1/5 share of the total profits. If the new mutual ratio of A and B is 7:1, what is B’s sacrifice ratio?

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22A and B share profits in the ratio 1:3. C is admitted for a 1/4 share of profits. If A makes no sacrifice, what is the new profit-sharing ratio of A, B and C?

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23A and B share profits in the ratio 9:1. C is admitted for a 1/5 share, and A and B sacrifice equally for C. What will be the new ratio?

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24A and B share profits in the ratio 3:2. C is admitted for a 1/4 share. A gives up 1/6 of his old share. What is B’s sacrifice?

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25A and B share profits in (7:8). C is admitted for (1/3) share. A and B's new mutual ratio will be (1:1). What is B's sacrifice?

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Answer and explanation

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