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A and B shared profits in (3:5). The new ratio is (2:4:2). What is the sacrificing ratio of A and B?

Answer and explanation

Correct answer: (1:1)

The governing concept is sacrificing ratio, calculated as old share minus new share for each existing partner. The old ratio 3:5 has a total of 8, so A’s old share is 3/8 and B’s old share is 5/8. The new ratio 2:4:2 also totals 8, so A’s new share is 2/8 and B’s new share is 4/8. Therefore, A’s sacrifice is 3/8 − 2/8 = 1/8, while B’s sacrifice is 5/8 − 4/8 = 1/8. Their sacrifices are equal, so the sacrificing ratio is 1/8:1/8, which simplifies to 1:1. Hence option C is correct. Option A repeats the old ratio, option B repeats the new partners’ ratio terms, and option D incorrectly indicates unequal sacrifice.

Related tags

Sacrificing RatioNew RatioAdmissionNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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