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A and B share profits in the ratio 2/5:3/5. C is admitted for 1/5 of the profits. If A’s new profit share is 1/3, what is B’s sacrifice?

Answer and explanation

Correct answer: 2/15

B’s new share is 1 − 1/3 − 1/5 = 7/15. B’s old share was 3/5 = 9/15, so B’s sacrifice is old share minus new share: 9/15 − 7/15 = 2/15.

Related tags

Admission Of PartnerNew Profit-Sharing RatioSacrificeNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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