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The old partners share profits in the ratio 4:1. A new partner obtains 1/10 of the total profit from the old partners in their old ratio. What will be the sacrifice ratio of the second old partner?

Answer and explanation

Correct answer: \(1/50\)

The second old partner’s share in the old ratio is \(1/5\). Since the new partner takes \(1/10\) in the old ratio, the second partner’s sacrifice is \(1/10 \times 1/5 = 1/50\). Option B represents the first partner’s sacrifice because that partner’s old share is \(4/5\). Exam tip: Multiply the incoming partner’s share by each old partner’s share in the old ratio.

Related tags

Admission Of PartnerNew Profit Sharing RatioSacrifice RatioPartnership AccountsClass 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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