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A and B share profits in the ratio 7:4. C is admitted as a partner for a 3/11 share of the profits, and the remaining profit is divided between A and B in their old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 56:32:33

C receives 3/11, leaving 8/11 for A and B. They divide this remainder in their old ratio of 7:4, so A receives (8/11 × 7/11) = 56/121 and B receives (8/11 × 4/11) = 32/121. C’s share, 3/11, equals 33/121. Therefore, the new ratio is 56:32:33.

Related tags

New Profit-Sharing RatioAdmission Of A PartnerPartnership AccountsNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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