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A and B share profits in the ratio 9:1. C is admitted for a 1/5 share, and A and B sacrifice equally for C. What will be the new ratio?

Answer and explanation

Correct answer: A:B:C = 8:0:2

The governing concept is equal sacrifice. C receives 1/5, so A and B each surrender half of that amount: (1/5) ÷ 2 = 1/10. Initially, A’s share is 9/10 and B’s share is 1/10 because their ratio is 9:1. After sacrifice, A’s share becomes 9/10 − 1/10 = 8/10, while B’s share becomes 1/10 − 1/10 = 0. C receives 1/5 = 2/10. Consequently, the new ratio is 8/10:0:2/10, or 8:0:2. Option A is correct. Although a zero share may look unusual, it follows directly from the stated equal-sacrifice condition; option B ignores the sacrifice and the remaining options give incorrect deductions.

Related tags

Equal SacrificeAdmissionNew RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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