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A and B share profits in the old ratio of 4:5. C is admitted for a 1/3 share of profits, and the new profit-sharing ratio of A and B becomes 1:1. What is A’s sacrificing ratio?

Answer and explanation

Correct answer: 1/9

A’s old share was \(4/9\). After C receives \(1/3\), the remaining \(2/3\) profit is shared equally by A and B, so A’s new share is \(1/3\). Therefore, A’s sacrifice = old share − new share = \(4/9-1/3=1/9\). Option C represents A’s new share, not the sacrifice. Exam tip: calculate sacrifice by subtracting the new share from the old share.

Related tags

Admission Of PartnerNew Profit Sharing RatioSacrificing RatioAccountancy Class 12Reconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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