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A and B share profits in the ratio 11:7. C is admitted for 1/6 of the total profit, and the remaining profit is shared by A and B in their old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 55:35:18

C receives 1/6 of the total profit, leaving 5/6 for A and B. They divide this remainder in their old ratio of 11:7, so A receives (5/6 × 11/18) = 55/108 and B receives (5/6 × 7/18) = 35/108. C's share, 1/6, equals 18/108. Therefore, the new ratio A:B:C is 55:35:18.

Related tags

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

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