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A and B share profits in the ratio 9:2. C is admitted with a 1/11 share of the profits. 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: \(90:20:11\)

C receives \(1/11\), so the profit left for A and B is \(10/11\). Distributing this remainder in the old ratio \(9:2\), A receives \(10/11 \times 9/11=90/121\) and B receives \(10/11 \times 2/11=20/121\). C’s share is \(1/11=11/121\). Therefore, the new ratio is \(90:20:11\). Option A incorrectly treats the old ratio as unchanged after C’s admission. Exam tip: subtract the new partner’s share from 1, then multiply the remainder by each old partner’s share.


Related tags

Partnership AccountsAdmission Of PartnerNew Profit Sharing RatioOld RatioRemaining ProfitReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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