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A and B share profits in the ratio 6:5. C is admitted for a 1/11 share of the profits, which A and B sacrifice in the ratio 5:6. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 61:49:11

A and B's old shares are 6/11 and 5/11. C receives 1/11, which A and B sacrifice in the ratio 5:6, so their sacrifices are 5/121 and 6/121. Their new shares are 6/11 − 5/121 = 61/121 and 5/11 − 6/121 = 49/121; C's share is 1/11 = 11/121. Therefore, the new profit-sharing ratio is 61:49:11.

Related tags

Partnership AccountingNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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