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Suman and Kamal share profits in the ratio \(3:4\). Aman is admitted as a partner with a \(\frac{1}{7}\) share of profits. Suman and Kamal sacrifice \(\frac{1}{14}\) and \(\frac{1}{14}\), respectively. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: Suman : Kamal : Aman = \(5:7:2\)

Suman’s old share was \(\frac{3}{7}=\frac{6}{14}\). After sacrificing \(\frac{1}{14}\), her new share becomes \(\frac{5}{14}\). Kamal’s old share was \(\frac{4}{7}=\frac{8}{14}\), so his new share becomes \(\frac{7}{14}\). Aman receives \(\frac{1}{7}=\frac{2}{14}\). Therefore, the new ratio is \(5:7:2\). Exam tip: Convert the old ratio into fractions with a common denominator before subtracting the sacrificed shares.

Related tags

Admission Of PartnerNew Profit Sharing RatioProfit SacrificeClass 12 AccountancyReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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