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A and B share profits in the ratio 5:7. C is admitted as a partner for a 1/6 share of profits. A and B sacrifice in the ratio 2:3 for C. What will be B’s new profit-sharing ratio?

Answer and explanation

Correct answer: 29/60

B’s old share was 7/(5 + 7) = 7/12. Since A and B sacrifice for C in the ratio 2:3, B bears 3/5 of C’s 1/6 share: (3/5) × (1/6) = 1/10. So B’s new share is 7/12 − 1/10 = 35/60 − 6/60 = 29/60.

Related tags

Admission Of A PartnerNew Profit-Sharing RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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