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If the new profit shares of the three partners are \(\frac{1}{3}\), \(\frac{1}{3}\), and \(\frac{1}{3}\), respectively, what will be their new profit-sharing ratio?

Answer and explanation

Correct answer: 1:1:1

The new profit-sharing ratio is the ratio of the partners’ given profit shares. Here, \(\frac{1}{3}:\frac{1}{3}:\frac{1}{3}\) simplifies to \(1:1:1\) by multiplying all three terms by 3. Therefore, option D is correct. Options A, B, and C show unequal shares, whereas all three partners have equal shares here. Exam tip: To convert fractional shares into a ratio, multiply all terms by their common denominator.

Related tags

AdmissionNew Profit Sharing RatioReconstitutionPartnership AccountsClass 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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