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Anshu and Bindu are partners sharing profits in the ratio 3:7. Chintan is admitted to the partnership for a 1/4 share of the total profit. If Anshu’s new profit share is 1/5, what will be Bindu’s new profit share?

Answer and explanation

Correct answer: 11/20

The new profit shares of all partners must add up to 1. Therefore, Bindu’s new share = 1 − 1/5 − 1/4 = 20/20 − 4/20 − 5/20 = 11/20. Option C (7/10) is Bindu’s old share, so it does not represent the revised ratio. Exam tip: subtract the new partner’s share and the specified new shares from 1 to find the remaining partner’s share.

Related tags

Admission Of PartnerNew Profit Sharing RatioPartner ShareAccountancy Class 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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