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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.

Medium · Level 3 · 25 questions

Practice questions

01Saral and Taral share profits in the ratio 6:4. Garima is admitted for a 1/5 share, taken from the old partners in their old ratio. What is the new profit-sharing ratio?

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02On the admission of a new partner, what is the ratio of the portions of profit surrendered by the existing partners called?

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03A and B share profits in the ratio 2:5. C is allotted \(\frac{2}{7}\) of the total profit, and the remaining profit is shared in the old ratio. What will be the new profit-sharing ratio?

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04A and B share profits in the ratio 7:2. C is admitted for a \(1/3\) share of the total profit. If the remaining profit is shared by A and B in their old ratio, what will be the new profit-sharing ratio?

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05A and B share profits in the ratio 4:7. The new partner C is given \(3/11\) of the total profit, and the remaining profit is shared between A and B in their old ratio. What will be the new profit-sharing ratio?

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06On the admission of a new partner, what does the new profit-sharing ratio represent?

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07A and B share profits in the ratio 1:4. C is admitted as a partner for a 1/5 share of profits. If C’s share is taken from the old partners in their old ratio, what will be the new profit-sharing ratio?

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08A and B share profits in the ratio 6:1. C is admitted for a \(1/7\) share of the total profit. If the remaining profit is shared between A and B in their old ratio, what will be the new profit-sharing ratio?

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09A and B share profits in the ratio 3:8. The new partner C is given 2/11 of the total profit, and the remaining profit is shared between 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 9:5. C is admitted for 1/7 of the total profit, and the remaining profit is shared between A and B in their old ratio. What will be the new profit-sharing ratio?

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11A and B share profits in (5:6). C gets (3/11) share. What is the new ratio if the balance is shared in the old ratio?

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12A and B share profits in the ratio 5:4. C is admitted with a 1/9 share of profit taken entirely from A’s share. What will be the new profit-sharing ratio?

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13A and B share profits in the ratio 3:5. C is admitted and receives a 1/8 share of profits entirely from B's share. What will be the new profit-sharing ratio?

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14A and B share profits in (7:5). C gets (1/6) share only from A. What is the new profit sharing ratio?

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15A and B share profits in the ratio 4:9. C is admitted with a 2/13 share of profits, which is given entirely by B. What will be the new profit-sharing ratio?

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16A and B share profits in the ratio 11:4. C is admitted for a 1/5 share, which is taken entirely from A’s share. What will be the new profit-sharing ratio?

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17A and B share profits in the ratio 2:7. C is admitted with a 1/9 share of the total profit, transferred entirely from B’s share. What will be the new profit-sharing ratio?

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18If a new partner receives a share of profit entirely from the share of only one existing partner, which feature of the new profit-sharing ratio is correct?

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19A and B are partners. C is admitted into the partnership, and C acquires his entire share only from B’s share. Which statement about the new profit-sharing ratio is definitely correct?

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20A and B share profits in the ratio 6:5. C is admitted for a 1/11 share of profits, acquired entirely from A’s share. What will be the new profit-sharing ratio?

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21A and B share profits in the ratio 7:8. C is given a 2/15 share of profits entirely out of B’s share. What will be the new profit-sharing ratio of A, B and C?

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22A and B share profits in the ratio 4:3. C is admitted for a 1/7 share, which is acquired from A and B in the sacrificing ratio 3:4. What will be the new profit-sharing ratio?

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23A and B share profits in the ratio 5:2. C is admitted for a 1/7 share of the total profit, which is surrendered by A and B in the ratio 2:5. What will be the new profit-sharing ratio?

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24In which situation does an existing partner’s new profit-sharing ratio remain equal to that partner’s old ratio on the admission of a new partner?

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25A and B share profits in the ratio 3:4. C is admitted for a \(2/7\) share of the total profits, and the sacrificing ratio of A and B is 2:3. What will be the new profit-sharing ratio?

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