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A and B share profits in the ratio 4:3. They admit C for a 1/7 share of profits, acquired as 1/21 from A and 2/21 from B. What is the new profit-sharing ratio of A, B and C?

Answer and explanation

Correct answer: A : B : C = 11 : 7 : 3

A's old share is 4/7 = 12/21, and B's old share is 3/7 = 9/21. After giving up 1/21 and 2/21 respectively, their new shares are 11/21 and 7/21. C receives 1/7 = 3/21. Thus, the new ratio is 11:7:3.

Related tags

Admission Of PartnerNew Profit-Sharing RatioClass 12 AccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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