A and B share profits in the ratio 1:2. C is admitted for a 1/3 share of the profits, and the remaining profit is shared between A and B in their old ratio. What will be the new profit-sharing ratio?

Correct answer: 2:4:3

C receives 1/3 of the total profit, leaving 2/3 for A and B. Sharing this balance in their old ratio of 1:2 gives A \(\frac{2}{3} \times \frac{1}{3}=\frac{2}{9}\) and B \(\frac{2}{3} \times \frac{2}{3}=\frac{4}{9}\). C’s share is \(\frac{1}{3}=\frac{3}{9}\). Therefore, the new ratio A:B:C is 2:4:3. Exam tip: If the incoming partner takes a specified share and the balance is divided in the old ratio, multiply each old partner’s fraction by the remaining share.