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The new partner’s share of profit is 1/4. What will be the total remaining share of profit for the old partners?

Answer and explanation

Correct answer: 3/4

The total profit is taken as 1. Therefore, the combined share of the old partners = 1 − 1/4 = 3/4. Hence, option A is correct. Option B is the new partner’s share, not the remaining share of the old partners. Exam tip: Remaining share of old partners = 1 − new partner’s share.

Related tags

AdmissionNew-Profit-Sharing-RatioPartnership-AccountingClass-12New Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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