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A and B are partners. C is admitted into the partnership, and C acquires his entire share only from B’s share. Which statement about the new profit-sharing ratio is definitely correct?

Answer and explanation

Correct answer: A’s share will remain unchanged

Since C acquires the entire share only from B, A does not sacrifice any part of the old share. B’s share decreases by C’s acquired share. Exam tip: reduce only the sacrificing partner’s share.

Related tags

AccountancyPartnershipAdmission Of PartnerNew Profit Sharing RatioSacrificing RatioClass 12Reconstitution Admission Of A PartnerClass 12 Mcq

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