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A and B share profits in the ratio 5:6. C is admitted for a \(\frac{2}{11}\) share of the profits. If A’s new share is \(\frac{4}{11}\), what will be B’s new share?

Answer and explanation

Correct answer: \(\frac{5}{11}\)

After C’s admission, the sum of the new profit shares of A, B and C must be 1. Therefore, B’s new share = \(1-\frac{4}{11}-\frac{2}{11}=\frac{5}{11}\). The old ratio 5:6 provides context, but B’s new share can be found directly from the given new shares of A and C. Exam tip: subtract the known new shares from the total profit share, 1.

Related tags

Admission Of A PartnerNew Profit Sharing RatioProfit SharingFraction CalculationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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