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A and B share profits in the ratio 9:11. C is admitted for a \(\frac{3}{20}\) share of the total profit, which is sacrificed by A and B in the ratio 2:1. What will be B’s new share?

Answer and explanation

Correct answer: \(\frac{1}{2}\)

B’s old share is \(\frac{11}{20}\). Since the sacrificing ratio of A and B is 2:1, B sacrifices \(\frac{1}{3}\) of C’s share, i.e. \(\frac{1}{3}\times\frac{3}{20}=\frac{1}{20}\). Therefore, B’s new share is \(\frac{11}{20}-\frac{1}{20}=\frac{10}{20}=\frac{1}{2}\). Exam tip: a sacrificing partner’s new share is calculated by subtracting the share sacrificed from the old share.

Related tags

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

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