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Ajay and Vikas share profits in the ratio 7:2. Mohit is admitted for 1/9 of the total profit, acquired from the old partners in their old ratio. What will be Ajay’s new profit share?

Answer and explanation

Correct answer: 56/81

Mohit receives 1/9 of the total profit, leaving 8/9 for Ajay and Vikas. Ajay’s old share is 7/(7+2) = 7/9. Since Mohit’s share is acquired in the old ratio, Ajay’s new share is (8/9) × (7/9) = 56/81. Therefore, option A is correct.

Related tags

Admission Of PartnerNew Profit-Sharing RatioOld RatioPartnership AccountingNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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