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If partner A’s old profit-sharing share was 1/3 and his new share after reconstitution becomes 1/2, what is A’s gaining share?

Answer and explanation

Correct answer: 1/6

Gaining share = New share − Old share. Therefore, A’s gaining share = 1/2 − 1/3 = (3 − 2)/6 = 1/6. Option B represents only the old share, not the gain. Exam tip: always subtract the old share from the new share to calculate the gaining share.

Related tags

Gaining SharePartner ReconstitutionProfit Sharing RatioFraction CalculationNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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