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A and B share profits in the ratio 6:1. C is admitted for a \(1/7\) share of the total profit. If the remaining profit is shared between A and B in their old ratio, what will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 36:6:7

C receives \(1/7\) of the total profit, so the profit left for A and B is \(1-1/7=6/7\). Sharing this remainder in the old ratio 6:1 gives A \(6/7\times6/7=36/49\) and B \(6/7 imes1/7=6/49\). C’s share is \(1/7=7/49\). Hence, the new ratio is 36:6:7. Exam tip: When the remaining profit is divided in the old ratio, multiply each old ratio fraction by the remaining-profit fraction.

Related tags

New Profit Sharing RatioAdmission Of PartnerOld RatioRemaining ProfitAccountancyReconstitution Admission Of A PartnerClass 12 Mcq

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