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In a partnership, A's old share was \(\frac{1}{2}\) and the new share is \(\frac{1}{3}\). What is A's sacrifice?

Answer and explanation

Correct answer: \(\frac{1}{6}\)

Sacrifice is calculated by subtracting the new share from the old share: \(\frac{1}{2}-\frac{1}{3}=\frac{3-2}{6}=\frac{1}{6}\). Therefore, A's sacrifice is \(\frac{1}{6}\). Exam tip: always convert the shares to a common denominator before subtracting them.

Related tags

Partnership AccountsGoodwillSacrificing RatioOld ShareNew SharePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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