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A and B share profits in the ratio 10:7. C is admitted for a 3/17 share of the profits, and the remaining profit is shared between A and B in their old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 140:98:51

C receives 3/17 of the profit, leaving 14/17 for A and B. Since they divide this remainder in their old ratio of 10:7, A’s share is (14/17) × (10/17) = 140/289, and B’s is (14/17) × (7/17) = 98/289. C’s share is 3/17 = 51/289. Therefore, the new profit-sharing ratio is 140:98:51.

Related tags

New Profit-Sharing RatioAdmission Of A PartnerNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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