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A and B share profits in the ratio 7:5. After admitting C for a 1/6 share of profit, A and B sacrifice 1/12 and 1/12 respectively. What is the sacrificing ratio?

Answer and explanation

Correct answer: 1:1

Sacrificing ratio = A’s sacrifice : B’s sacrifice = 1/12 : 1/12 = 1:1. Hence, option A is correct. The ratio 7:5 is the old profit-sharing ratio, not the sacrificing ratio. In an exam, compare the actual shares sacrificed by the old partners, rather than their old profit-sharing ratio.

Related tags

AccountancyPartner-AdmissionSacrificing-RatioProfit-Sharing-RatioClass-12PartnershipNew Profit Sharing RatioReconstitution Admission Of A Partner

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