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If the new partner's (1/8) share is given by old partners in (3:1), what is the first old partner's sacrifice?

Answer and explanation

Correct answer: (3/32)

The governing concept is the sacrificing ratio: the new partner’s share is supplied by old partners in the stated proportion. The total share sacrificed is 1/8. The old partners sacrifice in the ratio 3:1, whose total is 4 parts; therefore the first partner contributes 3/4 of the total sacrifice. Calculation: first partner’s sacrifice = 1/8 × 3/4 = 3/32. The second partner would contribute 1/8 × 1/4 = 1/32, and together they contribute 4/32 = 1/8, confirming the result. Thus option A is correct. Option C gives the entire sacrifice rather than the first partner’s share, while B belongs to the second partner and D uses the ratio incorrectly.

Related tags

Sacrificing RatioAdmissionNew PartnerNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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