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A and B share profits in the ratio 3:8. The new partner C is given 2/11 of the total profit, and 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: 27:72:22

The old ratio of A and B is 3:8, whose total is 11. After C receives 2/11, the remaining profit is 9/11. Therefore, A receives 9/11 × 3/11 = 27/121 and B receives 9/11 × 8/11 = 72/121. C’s share, 2/11, is equal to 22/121. Hence, the new ratio is 27:72:22. Exam tip: First find the profit left after giving the new partner’s share, then distribute that balance among the old partners in their old ratio. Option B is incorrect because it combines the old ratio with C’s share without adjusting A’s and B’s shares.

Related tags

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

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