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After reconstitution, the new profit-sharing shares of two partners are \(\frac{28}{50}\) and \(\frac{17}{50}\), respectively. What will be their new profit-sharing ratio?

Answer and explanation

Correct answer: 28:17

Both shares have the same denominator, 50. Thus, \(\frac{28}{50}:\frac{17}{50}\) simplifies by cancelling the common denominator to \(28:17\). \(17:28\) reverses the order of the partners given in the question. Exam tip: when two fractions have the same denominator, their ratio is the ratio of their numerators.

Related tags

New RatioProfit Sharing RatioPartner ReconstitutionCommon DenominatorNew RatiosReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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