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A and B share profits in the ratio 10:9. C is admitted as a partner for 1/19 of the profits, and the remaining profit is shared between A and B in their old ratio. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 180:162:19

C receives 1/19 of the total profit, so the remaining profit for A and B is 18/19. This remainder is divided in the old ratio 10:9. Therefore, A receives (18/19) × (10/19) = 180/361 and B receives (18/19) × (9/19) = 162/361. C’s share, 1/19, is equal to 19/361. Hence, the new ratio is 180:162:19. Option B incorrectly combines the old ratio directly with C’s share without reducing A’s and B’s shares. Exam tip: If the incoming partner receives a specified share and the balance is divided in the old ratio, multiply each old partner’s fractional share by the remaining profit fraction.

Related tags

Remaining ProfitOld Profit Sharing RatioNew Profit Sharing RatioAdmission Of PartnerPartnership AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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