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A and B share profits in the ratio 4:5. C is admitted as a new partner for a 2/9 share of the profits. If A sacrifices 1/18 of his share, what will be B’s sacrifice?

Answer and explanation

Correct answer: 1/6

C’s share of 2/9 must equal the total sacrifice made by A and B. Since A sacrifices 1/18, B’s sacrifice = 2/9 − 1/18 = 4/18 − 1/18 = 3/18 = 1/6. Option B is only A’s sacrifice, not B’s. Exam tip: In the admission of a partner, the incoming partner’s share equals the total sacrifice of the old partners.

Related tags

AccountancyAdmission Of PartnerNew Profit Sharing RatioSacrificing RatioPartnership FundamentalsReconstitution Admission Of A PartnerClass 12 Mcq

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