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A and B share profits in the ratio \(6:7\). C is admitted for a \(\frac{1}{13}\) share of profits, which is surrendered by A and B in the ratio \(2:3\). What will be A's new profit-sharing ratio?

Answer and explanation

Correct answer: \(\frac{28}{65}\)

A's old share is \(\frac{6}{6+7}=\frac{6}{13}\). Since C receives a total share of \(\frac{1}{13}\) and the sacrifice ratio is \(2:3\), A's sacrifice is \(\frac{1}{13}\times\frac{2}{5}=\frac{2}{65}\). Therefore, A's new share is \(\frac{6}{13}-\frac{2}{65}=\frac{30-2}{65}=\frac{28}{65}\). Exam tip: Deduct the new partner's share from each old partner according to the stated sacrificing ratio.

Related tags

New Profit Sharing RatioSacrificing RatioAdmission Of PartnerPartnership AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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