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A new partner is admitted for a 1/3 share of the total profit. What share of the profit will collectively remain for the old partners?

Answer and explanation

Correct answer: 2/3

The total profit share is taken as 1. Therefore, the collective share remaining for the old partners is 1 − 1/3 = 2/3. Hence, option A is correct. Option B is the new partner’s share, while option D represents the entire profit share without deducting the new partner’s share. Exam tip: To find the old partners’ remaining share, subtract the new partner’s share from 1.

Related tags

Admission-Of-PartnerNew-Profit-Sharing-RatioRemaining-SharePartnership-AccountingClass-12-AccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancy

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