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A and B share profits in (5:4). C is admitted for (1/3) share. A and B's new mutual ratio will be (3:1). What is B's sacrifice?

Answer and explanation

Correct answer: (5/18)

The direct answer is A, 5/18. A and B originally share 5:4, so B’s old share is 4/9. C receives 1/3, leaving 2/3 for the old partners. Their new mutual ratio is 3:1, so B receives one of four parts of the remaining 2/3: (2/3) × (1/4) = 1/6. B’s sacrifice is old share minus new share: 4/9 − 1/6 = 8/18 − 3/18 = 5/18. Option A is correct. Option B, 1/9, is too small and does not result from subtraction. Option C, 1/3, is C’s admitted share, not B’s sacrifice. Option D, 4/9, is B’s old share, not the amount surrendered. Exam cue: first distribute the remaining share according to the new mutual ratio.

Related tags

AdmissionSacrificeHard

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