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A and B's old ratio is 5:3 and the new ratio is 7:4:5. What will be A and B's sacrificing ratio?

Answer and explanation

Correct answer: 3:2

The governing concept is sacrificing ratio, which is calculated by subtracting each old partner’s new share from the corresponding old share. The old ratio totals 8, so A’s old share is 5/8 and B’s old share is 3/8. The new ratio totals 16, so A’s new share is 7/16 and B’s new share is 4/16. A’s sacrifice is 5/8 − 7/16 = 10/16 − 7/16 = 3/16. B’s sacrifice is 3/8 − 4/16 = 6/16 − 4/16 = 2/16. Therefore, the sacrificing ratio is 3/16:2/16 = 3:2, making option A correct. Options B and C are old or new ratio figures, while D reverses the calculated sacrifices.

Related tags

Sacrificing-RatioOld-RatioNew-Profit-Sharing-RatioAdmissionAccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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