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A and B share profits in the ratio 3:4. C is admitted as a partner for a 2/7 share of profits. If B’s new share is 3/7, what will be A’s new share of profits?

Answer and explanation

Correct answer: \(\frac{2}{7}\)

The sum of all partners’ new profit shares must be 1. Therefore, A’s new share = \(1-\frac{3}{7}-\frac{2}{7}=\frac{2}{7}\). Hence, option A is correct. Option B is B’s given new share, not A’s share. Exam tip: subtract the known partners’ shares from the total share of 1 to find the unknown share.

Related tags

AccountancyPartnershipAdmission Of PartnerNew Profit Sharing RatioSacrifice RatioReconstitution Admission Of A PartnerClass 12 Mcq

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