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A and B share profits in the ratio 8:5. C is admitted for a 3/13 share of the total profits. A and B sacrifice this share in the ratio 2:1. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 6:4:3

The old ratio 8:5 gives A a share of 8/13 and B a share of 5/13. C’s 3/13 share is sacrificed by A and B in the ratio 2:1, so A sacrifices 2/13 and B sacrifices 1/13. Therefore, A’s new share is 8/13 − 2/13 = 6/13, B’s is 5/13 − 1/13 = 4/13, and C’s is 3/13. Hence, the new ratio is 6:4:3. Exam tip: subtract each partner’s sacrifice from their old share; do not simply append the newcomer’s share to the old ratio.

Related tags

Sacrifice RatioNew Profit Sharing RatioAdmission Of PartnerAccountancy Class 12Partnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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