A and B are partners sharing profits in the ratio of 7 : 3 . They admit C for 1/5th share, which he acquires in equal proportions from both. Find the - Accountancy MCQ Competitive Exams 2026 | ExamTest.live

mediumMCQCompetitive Exams2026Accountancy

1 mark

A and B are partners sharing profits in the ratio of 7 : 3 . They admit C for \frac{1}{5} th share, which he acquires in equal proportions from both. Find the new profit sharing ratio.

Solution & Step-by-step Explanation

Old ratio of A and B = 7 : 3 Old share of A = \frac{7}{10} Old share of B = \frac{3}{10} C is admitted for \frac{1}{5} th share. He acquires this share equally from A and B : Share acquired from A = \frac{1}{2} \times \frac{1}{5} = \frac{1}{10} Share acquired from B = \frac{1}{2} \times \frac{1}{5} = \frac{1}{10} Now, calculate the new shares: New share of A = \frac{7}{10} - \frac{1}{10} = \frac{6}{10} New share of B = \frac{3}{10} - \frac{1}{10} = \frac{2}{10} Share of C = \frac{1}{5} = \frac{2}{10} Thus, the new profit sharing ratio of A : B : C is: 6 : 2 : 2 ⟹ 3 : 1 : 1

Try it yourself before checking the explanation above.

A and B are partners sharing profits in the ratio of 7 : 3 . They admit C for \frac{1}{5} th share, which he acquires in equal proportions from both. Find the new profit sharing ratio.

2 : 1 : 1

3 : 2 : 1

4 : 3 : 1

3 : 1 : 1

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