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A’s old share is \(\frac{3}{5}\) and the new share is \(\frac{1}{2}\). What is A’s sacrificing share?

Answer and explanation

Correct answer: \(\frac{1}{10}\)

Sacrificing share = old share − new share. Therefore, \(\frac{3}{5}-\frac{1}{2}=\frac{6-5}{10}=\frac{1}{10}\). The option \(\frac{1}{5}\) is incorrect because the fractions must first be converted to a common denominator before subtraction. Exam tip: For a partner’s sacrifice, use the formula old share − new share.

Related tags

GoodwillSacrificing RatioPartnership AccountsFraction OperationsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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