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Suman and Kamal share profits in the ratio 5:2. Aman is admitted for a 1/7 share of the profits. Suman and Kamal each sacrifice 1/14 of the profits. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: Suman : Kamal : Aman = 9:3:2

Suman’s old share is 5/7 and Kamal’s is 2/7. After each sacrifices 1/14, their new shares are 5/7 − 1/14 = 9/14 and 2/7 − 1/14 = 3/14, respectively. Aman’s share is 1/7 = 2/14. Thus, the new ratio is 9/14 : 3/14 : 2/14 = 9:3:2, so option A is correct.

Related tags

Admission Of A PartnerNew Profit-Sharing RatioSacrificeNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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