Accountancy Part AAdmission of a Partner

A and B are partners sharing profits in the ratio of 4:3. C was admit…

A and B are partners sharing profits in the ratio of 4:3. C was admitted as a new partner for 1/4 share in the future profits of the firm. What would be the new profit sharing ratio of A, B and C?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → 12:9:7

The new partner takes his share from the old partners. Unless the question says otherwise, he takes it from them in their old ratio, so the share left over is divided between the old partners in their old ratio.

C’s share = 1/4, so the share left for A and B = 1 − 1/4 = 3/4
A’s new share = 4/7 × 3/4 = 12/28
B’s new share = 3/7 × 3/4 = 9/28
C’s share = 1/4 = 7/28
New ratio of A, B and C = 12 : 9 : 7

Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.

NCERT (2026-27 edition):
New Profit Sharing Ratio

Extract from the NCERT textbook

NCERT (2026-27 edition):
New Profit Sharing Ratio – “… However, if nothing is specified as to how does the new partner acquire his share from the old partners; it may be assumed that he gets it from them in their profit sharing ratio.”