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A and B share profits in the ratio \(3:14\). C is admitted for a \(1/17\) share, which is taken entirely from B’s share. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: \(3:13:1\)

The old total ratio is \(3+14=17\), so A’s share is \(3/17\) and B’s share is \(14/17\). Since C’s \(1/17\) share is taken entirely from B, A’s share remains unchanged, while B’s new share becomes \(14/17-1/17=13/17\). Therefore, the new ratio is \(3/17:13/17:1/17=3:13:1\). Exam tip: If the incoming partner takes the entire share from only one existing partner, reduce the share of only that partner.

Related tags

Admission Of PartnerNew Profit Sharing RatioSacrifice Of SharePartnership AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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