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The new partner’s share in the total profit is \(\frac{2}{9}\). What will be the combined share of the old partners?

Answer and explanation

Correct answer: \(\frac{7}{9}\)

Taking the total profit as \(1\), the combined share of the old partners is \(1-\frac{2}{9}=\frac{7}{9}\). Therefore, option A is correct. Option B represents the new partner’s share, not the old partners’ combined share. Exam tip: subtract the incoming partner’s share from 1 to find the remaining share of the old partners.

Related tags

AdmissionNew Profit Sharing RatioAccountancy Class 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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