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A and B share profits in the ratio 4:5. C is admitted for a 2/9 share, and A’s new share becomes 1/3. What is the sacrificing ratio of A and B?

Answer and explanation

Correct answer: 1:1

Answer: option A, 1:1. Sacrificing ratio is calculated partner by partner as old share minus new share. The old ratio 4:5 has total 9 parts, so A’s old share was 4/9. A’s new share is 1/3=3/9. Thus A sacrifices 4/9−3/9=1/9. C receives a total share of 2/9. The remaining part of C’s share must be sacrificed by B, so B’s sacrifice=2/9−1/9=1/9. Therefore the sacrificing ratio A:B is (1/9):(1/9)=1:1. Option B and option C represent unequal sacrifices and do not satisfy the given information. Option D is merely the old profit-sharing ratio, not the sacrificing ratio. The total sacrifice 1/9+1/9=2/9 also checks exactly with C’s admitted share.

Related tags

AdmissionSacrificing-RatioNew-Profit-Sharing-RatioOld-ShareAccountancyNew Profit Sharing RatioReconstitution Admission Of A PartnerClass 12 Mcq

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