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In the new profit-sharing ratio (6:3:1), what will be the profit share of the first old partner?

Answer and explanation

Correct answer: 6/10

The sum of all parts in the new ratio is 6 + 3 + 1 = 10. Since the first old partner has a ratio of 6, the partner’s share of profit is 6/10. 6/9 is incorrect because the total of all three partners’ shares is 10, not 9. Exam tip: Convert a ratio into a profit share by dividing the concerned partner’s part by the total of the ratio.

Related tags

AdmissionNew-Profit-Sharing-RatioPartnership-AccountsClass-12New Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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