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A and B share profits in the ratio 3:5. The new partner C is given 1/8 of the profits, and B’s new share is 1/2. What is A’s sacrifice?

Answer and explanation

Correct answer: 0

A’s old share was 3/(3 + 5) = 3/8. A’s new share is the remainder after C’s and B’s shares: 1 − 1/8 − 1/2 = 3/8. Thus A’s sacrifice, calculated as old share minus new share, is 3/8 − 3/8 = 0.

Related tags

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

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