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A and B share profits in the ratio 2:3. C is admitted for a 1/5 share of profits, and A’s new share becomes 1/3. What is the sacrificing ratio of A and B?

Answer and explanation

Correct answer: 1:2

A’s old share is 2/5 and his new share is 1/3, so A’s sacrifice = 2/5 − 1/3 = 1/15. Since C receives 1/5, B’s new share is 1 − 1/3 − 1/5 = 7/15. Therefore, B’s sacrifice = 3/5 − 7/15 = 2/15. Hence, the sacrificing ratio is 1/15 : 2/15 = 1:2. In the examination, calculate sacrifice as old share minus new share.

Related tags

AccountancyAdmission-Of-PartnerSacrificing-RatioNew-Profit-Sharing-RatioPartnership-AccountsNew Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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