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A and B share profits in the ratio 6:5. The new partner C receives a 2/11 share of the total profits entirely from B’s share. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 6:3:2

The old ratio is 6:5, so A’s and B’s old shares are 6/11 and 5/11, respectively. Since C receives 2/11 entirely from B, B’s new share becomes 5/11 − 2/11 = 3/11, while A’s share remains 6/11. Therefore, A:B:C = 6/11:3/11:2/11 = 6:3:2. Exam tip: If the incoming partner acquires the share entirely from one existing partner, reduce only that partner’s share.

Related tags

New Profit-Sharing RatioAdmission Of PartnerShare AcquiredPartnership AccountingNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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