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A and B share in the old ratio 5:4. C takes a one-third share from A and B in the old ratio. What is the new ratio?

Answer and explanation

Correct answer: 10:8:9

C receives one-third of the total profit, so A and B together retain two-thirds. Since this retained portion remains in their old ratio 5:4, A’s new share is (2/3)×(5/9) = 10/27 and B’s new share is (2/3)×(4/9) = 8/27. C’s share is 1/3 = 9/27. Putting all shares over the common denominator 27 gives the new ratio 10:8:9. Hence option A is correct. Option B simply adds C’s fraction without reducing the old partners’ shares. Option C incorrectly treats the old numerators as unchanged and gives C three parts, while option D reverses the relative positions of A and B. The ratios also sum to 27, representing the whole profit.

Related tags

New RatioPartner AdmissionOld RatioAccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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