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In the new profit-sharing ratio 7:5:3, the new partner is in the third position. What will be the new partner’s share of the total profit?

Answer and explanation

Correct answer: 3/15

The total parts in the ratio are 7 + 5 + 3 = 15. Since the new partner is in the third position, the partner’s share is 3/15, which is equal to 1/5. Option B represents the first partner’s share and option C represents the second partner’s share. Exam tip: Divide a partner’s ratio part by the sum of all ratio parts to find the profit share.

Related tags

AdmissionNew PartnerNew Profit Sharing RatioProfit SharingClass 12 AccountancyReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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