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A new partner is admitted for a 1/3 share of profit. The old partners divide the remaining profit in the ratio 4:5. What is the first old partner’s new share of the total profit?

Answer and explanation

Correct answer: 8/27

The new partner receives 1/3, leaving 1 − 1/3 = 2/3 of the profit for the old partners. The first old partner receives 4/(4+5) = 4/9 of that remainder. Thus, their share of the total profit is (2/3) × (4/9) = 8/27.

Related tags

AccountancyPartner AdmissionNew Profit-Sharing RatioClass 12New Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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