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A and B share profits in the ratio 5:6. C is admitted for a \(\frac{2}{11}\) share of profits, and B’s new share is \(\frac{1}{2}\). What is A’s sacrifice?

Answer and explanation

Correct answer: \(\frac{3}{22}\)

A’s old profit share was \(\frac{5}{11}=\frac{10}{22}\). C receives \(\frac{2}{11}=\frac{4}{22}\), and B’s new share is \(\frac{1}{2}=\frac{11}{22}\). Therefore, A’s new share is \(1-\frac{4}{22}-\frac{11}{22}=\frac{7}{22}\). Hence, A’s sacrifice is \(\frac{10}{22}-\frac{7}{22}=\frac{3}{22}\). The share \(\frac{2}{11}\) belongs to C and is not A’s sacrifice. Exam tip: Sacrifice = old share − new share.

Related tags

Admission Of PartnerSacrifice RatioNew Profit Sharing RatioPartnership AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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