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A and B share profits in the ratio 10:3. C is admitted for a \(1/13\) share of the profits, which is sacrificed by A and B in the ratio 3:2. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 47:13:5

A’s old share is \(10/13=50/65\), and B’s old share is \(3/13=15/65\). C receives \(1/13=5/65\). Since the sacrificing ratio is 3:2, A sacrifices \(3/65\) and B sacrifices \(2/65\). Thus, A’s new share is \(47/65\), B’s is \(13/65\), and C’s is \(5/65\). Therefore, the new ratio is 47:13:5. Exam tip: Subtract each old partner’s sacrifice from the old share, then assign the new partner’s share.

Related tags

Sacrificing RatioAdmission Of PartnerNew Profit Sharing RatioPartnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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