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A and B share profits in the ratio 2:9. C is admitted for a \(3/11\) share of the total profits, which is sacrificed by A and B in the ratio 1:5. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 3:13:6

A and B originally receive \(2/11=4/22\) and \(9/11=18/22\), respectively. C’s share is \(3/11=6/22\). Since A and B sacrifice in the ratio 1:5, A sacrifices \(1/22\) and B sacrifices \(5/22\). Thus, A’s new share is \(4/22-1/22=3/22\), B’s is \(18/22-5/22=13/22\), and C’s is \(6/22\). Therefore, the new ratio is \(3:13:6\). Exam tip: subtract each existing partner’s sacrifice from their old share and then include the admitted partner’s share.

Related tags

Admission Of A PartnerSacrificing RatioNew Profit Sharing RatioPartnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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