Multiple Choice Questions on A and B are partners sharing profits and losses in the ratio of 7 5 They agree to admit C their mana........... for Commerce 12th Preparation

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Multiple Choice Questions

A and B are partners sharing profits and losses in the ratio of 7 5 They agree to admit C their mana...........

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

    13 : 7 : 4

    Correct Answer

    7 : 13 : 4

    Incorrect Answer

    7 : 5 : 6

    Incorrect Answer

    5 : 7 : 6

    Incorrect Answer
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    Explanation:

    - A and B originally share profits as 7:5, meaning A has 7/12 and B has 5/12 of the profits.

    - C is admitted and is given 1/6th share of the profits.

    - C's share is split as 1/24th from A and 1/8th from B.

    - A's new share = 7/12 - 1/24 = 14/24 = 7/12 - 1/24 = 13/24.

    - B's new share = 5/12 - 1/8 = 10/24 = 2/3 - 3/24 = 7/24.

    - C's share is already given as 1/6 or 4/24.

    - Recalculate the new total and simplify the fractions as needed: 13:7:4.

    Green Tick: Option 1 is correct with a new profit-sharing ratio of 13:7:4.

    By: santosh
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