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A and B share profits in the ratio 5:7. C is admitted for a 1/3 share, and A and B’s new ratio is 2:3. What is B’s sacrifice?

Answer and explanation

Correct answer: 11/60

Answer: option A, 11/60. Sacrifice means the share given up by an old partner, so we use: old share − new share. B’s old share was 7/(5+7)=7/12. C receives 1/3 of the total profit, so A and B together retain 1−1/3=2/3. Their new ratio is 2:3, whose total is 5. Therefore B receives 3/5 of the remaining 2/3, giving B’s new share=(3/5)×(2/3)=2/5. Hence B’s sacrifice=7/12−2/5. Taking 60 as the common denominator, 35/60−24/60=11/60. Thus A is correct. B is only B’s old share, not the amount sacrificed. C is B’s new share, and D is C’s share. A useful check is that the sacrificed shares of A and B together must equal C’s 1/3.

Related tags

AdmissionSacrificeNew-RatioFraction-CalculationAccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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