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A and B share profits in the ratio 8:5. C is admitted for a \(\frac{3}{13}\) share of the total profit. A and B sacrifice this share in the ratio 2:1. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 6:4:3

A and B previously held \(\frac{8}{13}\) and \(\frac{5}{13}\), respectively. C’s \(\frac{3}{13}\) share is sacrificed by A and B in the ratio 2:1, so A sacrifices \(\frac{2}{13}\) and B sacrifices \(\frac{1}{13}\). Their new shares are therefore \(\frac{6}{13}\) and \(\frac{4}{13}\), while C receives \(\frac{3}{13}\). Hence, the new ratio is 6:4:3. Exam tip: subtract each partner’s sacrificed share from the old share, then include the incoming partner’s share.

Related tags

Sacrifice RatioNew Profit Sharing RatioAdmission Of PartnerAccountancyReconstitution Admission Of A PartnerClass 12 Mcq

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