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If B’s old profit-sharing share is \(\frac{4}{7}\) and the new profit-sharing share is \(\frac{3}{7}\), what is B’s sacrificing share?

Answer and explanation

Correct answer: \(\frac{1}{7}\)

Sacrificing share = old share − new share. Therefore, B’s sacrificing share is \(\frac{4}{7}-\frac{3}{7}=\frac{1}{7}\). The value \(\frac{3}{7}\) is B’s new share, not the sacrificed share. Exam tip: In admission questions, calculate a partner’s sacrifice by subtracting the new share from the old share.

Related tags

Admission Of A PartnerNew Profit Sharing RatioSacrificing SharePartnership AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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