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A and B share profits in the ratio 5:7. C receives a 1/6 share entirely from A. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 3:7:2

Convert A and B's old ratio into fractions: A=5/12 and B=7/12. Since C takes 1/6=2/12 from A, A's remaining share is 5/12−2/12=3/12=1/4. B remains 7/12 and C receives 1/6=2/12. Expressing all shares over 12 gives 3:7:2. Therefore option A is correct; the other ratios either fail to deduct C's share correctly or use inconsistent proportions.

Related tags

New Profit Sharing RatioAdmissionSacrificing ShareRatio CalculationNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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