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A and B share profits in (9:6). C gets (1/5) share. A and B's new mutual ratio is (7:5). Did A gain or sacrifice?

Answer and explanation

Correct answer: Sacrifice (2/15)

Old partners retain (4/5) and in (7:5) A's new share is (7/15). A's old share was (3/5=9/15) so sacrifice is (2/15).

Related tags

AdmissionGain-SacrificeHardNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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