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A and B’s old ratio is 4:3. After admission of C, the new ratio is 3:3:2. What is the sacrificing ratio?

Answer and explanation

Correct answer: A and B = 11:3

The governing rule is sacrificing ratio = old share − new share for each old partner. A’s old share is 4/7 and his new share is 3/8. Thus A sacrifices 4/7 − 3/8 = 32/56 − 21/56 = 11/56. B’s old share is 3/7 and his new share is 3/8, so B sacrifices 3/7 − 3/8 = 24/56 − 21/56 = 3/56. Comparing the sacrifices gives 11/56 : 3/56 = 11:3. Therefore option A is correct. Option B reverses the order, option C incorrectly excludes B even though B also sacrifices, and option D assumes equal sacrifice despite the different old shares. The new partner’s share is represented by the combined sacrifice of A and B.

Related tags

Sacrificing RatioNew Profit Sharing RatioPartner AdmissionAccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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