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Choose the correct correction. Mohan and Sohan share profits in the ratio 5:7. Rohan is admitted for a 1/4 share, and the balance is shared in the ratio 4:5. What is Sohan’s sacrifice?

Answer and explanation

Correct answer: 1/6

The governing principle is that sacrifice equals the old share minus the revised share. Sohan’s old share is 7/12 from the ratio 5:7. Rohan receives 1/4, so the balance for the two existing partners is 3/4. Under the revised ratio 4:5, Sohan receives 5/9 of that balance: 3/4 × 5/9 = 5/12. Hence Sohan’s sacrifice is 7/12 − 5/12 = 2/12 = 1/6. Option A is the corrected answer. Option B is too small, option C is Sohan’s new share rather than his sacrifice, and option D is the incoming partner’s share. The revised shares also total 4/12 + 5/12 + 3/12 = 1.

Related tags

CorrectionAdmissionSacrificeNew RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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