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A and B share profits in the ratio 7:6. On admission, C is given \(1/13\) of the total profit only from A’s share. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 6:6:1

The old ratio of A and B is 7:6, so their original shares are \(7/13\) and \(6/13\), respectively. C receives \(1/13\) only from A; therefore, A’s new share is \(7/13-1/13=6/13\). B’s share remains \(6/13\), while C receives \(1/13\). Hence, the new profit-sharing ratio is \(6:6:1\). Exam tip: When the incoming partner acquires the entire share from one partner, subtract that share only from the identified partner’s original share.

Related tags

AccountancyPartner AdmissionNew Profit Sharing RatioSingle SacrificeProfit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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