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A and B share profits in the ratio 3:2. C is admitted for a 1/4 share. A gives up 1/6 of his old share. What is B’s sacrifice?

Answer and explanation

Correct answer: 3/20

The governing concept is that the incoming partner’s share equals the combined sacrifices of the existing partners. A’s old share is 3/5, and A gives up 1/6 of that old share. Thus A’s actual sacrifice is (3/5) × (1/6) = 3/30 = 1/10. C receives a total share of 1/4, so B’s sacrifice is the balance: 1/4 − 1/10. With denominator 20, this is 5/20 − 2/20 = 3/20. Therefore option A is correct. Option B is only A’s sacrifice, option C is C’s total share rather than B’s sacrifice, and option D results from an incorrect subtraction. The calculation also shows that both old partners together surrender exactly 1/4.

Related tags

Sacrifice CalculationAdmissionPartner ShareNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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