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If a new partner is given a \(1/8\) share, contributed by the old partners in their ratio of \(3:1\), what will be the sacrificing share of the second old partner?

Answer and explanation

Correct answer: \(1/32\)

The old partners share the new partner’s portion in the ratio \(3:1\). Therefore, the second partner’s fraction of the sacrifice is \(1/(3+1)=1/4\). His sacrificing share is \(1/8 \times 1/4=1/32\). The amount \(3/32\) would be the first partner’s sacrifice. Exam tip: When the new partner’s share is sacrificed in the old ratio, multiply it by each partner’s fraction of that ratio.

Related tags

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

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