A and B are partners sharing profits in the ratio of 2:3. They admitted C as a new partner for 1/5 share in the future profits of the firm. Calculate the new profit share of A.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 8/25
When nothing is said about how the new partner takes his share, the old partners are taken to give it up in their old ratio. The rest of the profit, after C's share, is then divided between A and B in their old ratio.
Profit left for A and B = 1 − 1/5 = 4/5
A's new share = 4/5 × 2/5 = 8/25
B's new share = 4/5 × 3/5 = 12/25
C's share = 1/5 = 5/25
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):
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