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A and B share profits in the ratio 4:9. C is admitted for a 3/13 share of the profit, and the remaining profit is distributed in the old ratio. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 40:90:39

C receives 3/13, so the remaining share for A and B is 10/13. Distributing this in the old ratio 4:9 gives A = 10/13 × 4/13 = 40/169 and B = 10/13 × 9/13 = 90/169. C’s share, 3/13, equals 39/169. Therefore, the new ratio is 40:90:39. Exam tip: First calculate the remaining profit, then distribute it among the old partners in their old ratio.

Related tags

Admission Of PartnerNew Profit Sharing RatioOld RatioPartnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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