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A and B share profits in the ratio 3:10. C is admitted for a 3/13 share of profit, 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: 30:100:39

C receives 3/13 of the profit, so the remaining share for A and B is 10/13. Distributing this remainder in the old ratio 3:10 gives A: (10/13) × (3/13) = 30/169 and B: (10/13) × (10/13) = 100/169. C’s share, 3/13, equals 39/169. Therefore, the new ratio is 30:100:39. Exam tip: Multiply each old-ratio term by the remaining fraction, then express all three shares with a common denominator.

Related tags

AccountancyPartner AdmissionNew Profit Sharing RatioRemaining ProfitProfit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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