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A and B share profits in the ratio 3:10. C is given 3/13 of the profit, and the remaining profit is shared in the old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 30:100:39

C receives 3/13, so the remaining profit is 1 − 3/13 = 10/13. This balance is divided between A and B in their old ratio of 3:10. Therefore, A receives (10/13) × (3/13) = 30/169 and B receives (10/13) × (10/13) = 100/169. C’s share, 3/13, equals 39/169. Hence, the new ratio is 30:100:39. The key exam tip is to calculate the balance profit first and then apply the old ratio to it.

Related tags

Admission Of PartnerNew Profit Sharing RatioBalance ProfitOld RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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