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A and B share profits in the ratio 14:5. C is admitted for a 3/19 share, and the remaining profit is shared between A and B in their old ratio. What is the new profit-sharing ratio?

Answer and explanation

Correct answer: 224:80:57

The governing concept is the new profit-sharing ratio after admission. C receives 3/19, so the balance for A and B is 1 − 3/19 = 16/19. This balance must be divided in their old ratio, 14:5, whose total is 19. Therefore, A receives 16/19 × 14/19 = 224/361, while B receives 16/19 × 5/19 = 80/361. C’s share is 3/19 = 57/361. Taking the common denominator 361, the new ratio is 224:80:57, so option A is correct. Options B and C fail to apply the reduced balance correctly, while D does not preserve the stated shares.

Related tags

AdmissionNew Profit-Sharing RatioOld RatioPartnership AccountsNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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