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A and B share profits in the ratio 7:5. C is admitted for a \(\frac{1}{6}\) share of the profits. A and B sacrifice this share in the ratio 4:1, respectively. What is B’s new share of profit?

Answer and explanation

Correct answer: \(\frac{23}{60}\)

B’s old share is \(\frac{5}{7+5}=\frac{5}{12}\). Since A and B sacrifice in the ratio 4:1, B sacrifices \(\frac{1}{5}\) of C’s \(\frac{1}{6}\) share, or \(\frac{1}{30}\). B’s new share is therefore \(\frac{5}{12}-\frac{1}{30}=\frac{25}{60}-\frac{2}{60}=\frac{23}{60}\).

Related tags

Admission Of A PartnerNew Profit-Sharing RatioSacrifice RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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