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If old partners give the new partner's share equally, what will be the sacrificing ratio?

Answer and explanation

Correct answer: (1:1)

The governing concept is that the sacrificing ratio records the relative portions of the incoming partner’s share surrendered by the old partners. If the question states that the old partners give this share equally, each partner sacrifices an identical fraction. Equal quantities have a ratio of 1:1, regardless of the old profit-sharing ratio or the final new ratio. For example, if the incoming partner receives 1/5 and two old partners contribute equally, each gives 1/10; their sacrifice ratio is 1/10:1/10, which simplifies to 1:1. Therefore option A is correct. Option B implies unequal sacrifice, while options C and D refer to profit-sharing ratios and cannot be selected without additional information.

Related tags

Sacrificing RatioAdmissionPartnership ReconstitutionNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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