A and B are partners sharing profits in the ratio of 7 : 5 . They agree to admit C , their manager, into partnership, who is to get 1/6th share in profits. He acquires his share as 1/24th from A and 1/8th from B . Calculate the new profit sharing ratio.

Old shares are A = 7/12 and B = 5/12 . Calculate the new shares by subtracting the respective sacrifices: New share of A = 7/12 - 1/24 = 14 - 1/24 = 13/24 New share of B = 5/12 - 1/8 = 10 - 3/24 = 7/24 Share of C : Share of C = 1/6 = 4/24 Thus, the new profit sharing ratio of A : B : C is: 13 : 7 : 4

A and B are partners sharing profits in the ratio of 7 : 5 . They agree to admit C , their manager, into partnership, who is to get 1/6th share in pro - Accountancy MCQ Competitive Exams 2026 | ExamTest.live

Home Tests Search Rank Profile

mediumMCQCompetitive Exams2026Accountancy

1 mark

A and B are partners sharing profits in the ratio of 7 : 5 . They agree to admit C, their manager, into partnership, who is to get \frac{1}{6} th share in profits. He acquires his share as \frac{1}{24} th from A and \frac{1}{8} th from B . Calculate the new profit sharing ratio.

A $13 : 11 : 9$
B $13 : 7 : 4$
C $13 : 11 : 7$
D $13 : 11 : 5$

Solution & Step-by-step Explanation

Old shares are A = \frac{7}{12} and B = \frac{5}{12} . Calculate the new shares by subtracting the respective sacrifices: New share of A = \frac{7}{12} - \frac{1}{24} = \frac{14 - 1}{24} = \frac{13}{24} New share of B = \frac{5}{12} - \frac{1}{8} = \frac{10 - 3}{24} = \frac{7}{24} Share of C : Share of C = \frac{1}{6} = \frac{4}{24} Thus, the new profit sharing ratio of A : B : C is: 13 : 7 : 4

Practice this question

Try it yourself before checking the explanation above.

A and B are partners sharing profits in the ratio of 7 : 5 . They agree to admit C, their manager, into partnership, who is to get \frac{1}{6} th share in profits. He acquires his share as \frac{1}{24} th from A and \frac{1}{8} th from B . Calculate the new profit sharing ratio.

13 : 11 : 9

13 : 7 : 4

13 : 11 : 7

13 : 11 : 5

Share This Question

Partnership New Profit Sharing Ratio

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse Tests Leaderboard

$A$ and $B$ are partners sharing profits in the ratio of $7 : 5$ . They agree to admit $C$ , their manager, into partnership, who is to get $\frac{1}{6} th$ share in profits. He acquires his share as $\frac{1}{24} th$ from $A$ and $\frac{1}{8} th$ from $B$ . Calculate the new profit sharing ratio.

Solution & Step-by-step Explanation

Practice this question

Share This Question

Related Questions

Ready for a Full Test?

Discussion

A and B are partners sharing profits in the ratio of 7:5. They agree to admit C, their manager, into partnership, who is to get 61​th share in profits. He acquires his share as 241​th from A and 81​th from B. Calculate the new profit sharing ratio.

Solution & Step-by-step Explanation

Practice this question

Share This Question

Related Questions

Ready for a Full Test?

Discussion

$A$ and $B$ are partners sharing profits in the ratio of $7 : 5$ . They agree to admit $C$ , their manager, into partnership, who is to get $\frac{1}{6} th$ share in profits. He acquires his share as $\frac{1}{24} th$ from $A$ and $\frac{1}{8} th$ from $B$ . Calculate the new profit sharing ratio.