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Kajal and Payal share profits in the ratio \(4:7\). Riya is admitted as a partner for a \(1/11\) share of the total profits. Kajal and Payal sacrifice Riya’s share in the ratio \(1:2\). What will be Payal’s new profit-sharing share?

Answer and explanation

Correct answer: \(19/33\)

Payal’s old share was \(7/(4+7)=7/11\). Out of Riya’s \(1/11\) share, Payal sacrifices \(2/(1+2)\times1/11=2/33\). Therefore, Payal’s new share is \(7/11-2/33=21/33-2/33=19/33\). Option B is only Payal’s old share because it does not deduct her sacrifice. Exam tip: Divide the incoming partner’s share according to the sacrificing ratio and subtract each partner’s sacrifice from their old share.

Related tags

Admission Of A PartnerNew Profit Sharing RatioSacrificing RatioAccountancy Class 12Partnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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