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A and B share profits in the ratio 5:3. The new partner C is given 1/8 of the profits. A and B sacrifice 1/16 and 1/16 of the profits, respectively. What is their sacrificing ratio?

Answer and explanation

Correct answer: 1:1

The sacrificing ratio is based on the shares surrendered by the old partners. A gives up 1/16 and B also gives up 1/16, so their sacrificing ratio is 1/16:1/16 = 1:1. Together, their sacrifices equal C’s 1/8 share.

Related tags

Sacrificing RatioAdmission Of A PartnerPartnership AccountingNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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