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A and B share profits in the ratio 2:3. On C’s admission, C is given 1/5 of the total profit. If A’s share in the new profit-sharing ratio is 7/15, what is B’s new share?

Answer and explanation

Correct answer: \(\frac{1}{3}\)

The partners’ new shares must add up to 1. Therefore, B’s share is \(1-\frac{7}{15}-\frac{1}{5}=1-\frac{7}{15}-\frac{3}{15}=\frac{5}{15}=\frac{1}{3}\).

Related tags

New Profit-Sharing RatioAdmission Of A PartnerNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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