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The combined new profit share of two old partners is \(\frac{3}{4}\). If they divide this share in the ratio \(2:1\), what will be the new profit share of the first old partner?

Answer and explanation

Correct answer: \(\frac{1}{2}\)

The first old partner receives \(\frac{2}{2+1}=\frac{2}{3}\) of the combined share. Therefore, the partner’s new profit share is \(\frac{3}{4}\times\frac{2}{3}=\frac{1}{2}\). The option \(\frac{2}{3}\) represents only the partner’s fraction of the old partners’ combined share, not the total profit share. Exam tip: add the ratio terms first, then multiply the combined share by the required ratio fraction.

Related tags

Admission Of PartnerNew Profit Sharing RatioPartnership AccountsProfit Sharing RatioClass 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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