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If A's share changes from one third to one fourth on change in profit ratio what is the conclusion for A?

Answer and explanation

Correct answer: A sacrificed one twelfth

Direct answer: A sacrificed one-twelfth, so option A is correct. Sacrifice means a partner gives up part of the old profit share. A's old share was \(1/3\), and the new share is \(1/4\). Convert them to a common denominator: \(1/3=4/12\) and \(1/4=3/12\). The decrease is \(4/12-3/12=1/12\), so A has sacrificed one-twelfth. Option A is correct because it states this exact decrease. Option B is wrong because A did not gain; the share became smaller. Option C is wrong because one-third and one-fourth are not equal. Option D is wrong because the sacrificed amount is the difference, one-twelfth, not the whole new share one-fourth. Exam cue: when a share falls, calculate old share minus new share; the result is sacrifice.

Related tags

GoodwillChange-In-RatioSacrifice-Calculation

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