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A, B and C share profits in the ratio 4:3:2. D is admitted for a 1/9 share, sacrificed by A, B and C in the ratio 2:1:1. What will be the new ratio?

Answer and explanation

Correct answer: A:B:C:D = 14:11:7:4

The correct answer is A. D receives 1/9, and this is sacrificed in the ratio 2:1:1. The total sacrifice parts are 4, so A sacrifices 2/36 = 1/18, while B and C each sacrifice 1/36. Convert the old ratio 4:3:2 into denominator 36: A = 16/36, B = 12/36 and C = 8/36. Subtract the sacrifices: A = 14/36, B = 11/36 and C = 7/36. D receives 1/9 = 4/36. Therefore the new ratio is 14:11:7:4. B shows old shares without the correct sacrifice, C simply appends D, and D has incorrect deductions. Check: 14+11+7+4 = 36.

Related tags

Admission Of PartnerSacrifice RatioNew Profit Sharing RatioPartnership AccountsReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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