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A and B share profits in the ratio 4:5. The new partner C is given \(\frac{2}{9}\) of the total profit, and A’s new share is \(\frac{1}{3}\). What will be B’s new share?

Answer and explanation

Correct answer: \(\frac{4}{9}\)

In the new profit-sharing ratio, the shares of A, B and C must total 1. Therefore, B’s new share is \(1-\frac{1}{3}-\frac{2}{9}=\frac{9-3-2}{9}=\frac{4}{9}\). \(\frac{2}{9}\) is C’s allotted share, while \(\frac{1}{3}\) is A’s new share. Exam tip: Always check that the new shares of all partners add up to 1.

Related tags

Accountancy Class 12Admission Of PartnerNew Profit Sharing RatioPartnership AccountsFraction CalculationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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