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Ankit and Rachit share profits in the ratio 2:3. Mansi is admitted for a share of 1/10 of the total profit, taken entirely from Rachit's share. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: Ankit : Rachit : Mansi = 4:5:1

Ankit's original share is 2/5, or 4/10, and Rachit's is 3/5, or 6/10. Since Mansi's 1/10 share comes entirely from Rachit, Rachit's new share is 6/10 − 1/10 = 5/10. The new ratio is therefore 4/10 : 5/10 : 1/10, or 4:5:1.

Related tags

Admission Of A PartnerNew Profit-Sharing RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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