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A and B are partners sharing profits in the old ratio 5:4. C is admitted to a 2/9 share in the firm, which is given up by A and B. If A sacrifices 1/9 of the profit, what is B’s sacrifice?

Answer and explanation

Correct answer: 1/9

C’s 2/9 share is the total share surrendered by A and B. A gives up 1/9, so B gives up the remainder: 2/9 − 1/9 = 1/9. Therefore, option B is correct.

Related tags

Goodwill AccountingAdmission Of PartnerSacrifice Of ShareReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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