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A and B have an old profit-sharing ratio of 4:5. In the new profit-sharing ratio of 3:4:2, what will be C’s share of the total profit?

Answer and explanation

Correct answer: 2/9

The sum of the new ratio 3:4:2 is 3 + 4 + 2 = 9. C receives 2 parts, so C’s share in the total profit is 2/9. The value 1/9 represents only one part, while 2/7 results from using an incorrect total. Exam tip: add all terms of the new ratio and divide the concerned partner’s term by that total.

Related tags

New Profit Sharing RatioAdmission Of A PartnerPartner ShareProfit SharingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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