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A and B share profits in the ratio 5:6. C is admitted as a partner for a 3/11 share of the total profit. The remaining profit is divided between A and B in their old ratio. What will be the new profit-sharing ratio?

Answer and explanation

Correct answer: 40:48:33

C receives 3/11 of the total profit, so the remaining share for A and B is 1 − 3/11 = 8/11. Dividing this remaining share in the old ratio 5:6 gives A's share as (8/11) × (5/11) = 40/121 and B's share as (8/11) × (6/11) = 48/121. C's share, 3/11, equals 33/121. Therefore, the new ratio is 40:48:33. Option B is incorrect because it simply combines the old ratio with C's stated fraction without allocating the remaining profit. Exam tip: calculate the balance share first, distribute it in the old ratio, and then express all partners' shares with a common denominator.

Related tags

Admission Of A PartnerNew Profit Sharing RatioRemaining Profit SharePartnership AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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