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The profit-sharing ratio of two old partners is \(4:1\). The new partner receives \(1/5\) of the profit. If the new partner’s share is sacrificed by the old partners in their old ratio, what is the sacrifice of the second old partner?

Answer and explanation

Correct answer: \(1/25\)

The new partner’s \(1/5\) share is sacrificed by the old partners in the ratio \(4:1\). The second partner’s fraction of the old ratio is \(1/(4+1)=1/5\). Therefore, his sacrifice is \(1/5\times1/5=1/25\), making option A correct. Exam tip: Multiply the incoming partner’s share by the concerned old partner’s fraction in the sacrifice ratio.

Related tags

Admission Of PartnerNew Profit Sharing RatioSacrifice RatioAccountancy Class 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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