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A and B share profits in (4:1). C is admitted for (1/5) share. A and B each give (1/10) of their own shares to C. What is sacrificing ratio?

Answer and explanation

Correct answer: (4:1)

A's sacrifice is (4/5 \times 1/10=4/50) and B's sacrifice is (1/5 \times 1/10=1/50). Sacrificing ratio is (4:1).

Related tags

GoodwillSacrificing RatioFractional SacrificePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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