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On the admission of a new partner, which relation correctly gives an old partner’s new profit share when that partner’s sacrificing share is known?

Answer and explanation

Correct answer: \(\text{New Share}=\text{Old Share}-\text{Sacrificing Share}\)

A new partner’s share is obtained from the sacrifice made by the old partners. Hence, an old partner’s new share equals old share minus sacrificing share. In exams, find the sacrificing share first and subtract it from the old share.

Related tags

AccountancyPartnershipAdmission Of PartnerNew Profit Sharing RatioSacrificing RatioClass 12Reconstitution Admission Of A PartnerClass 12 Mcq

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