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The old partners share profits in the ratio 2:3:5. If the incoming partner obtains the entire 1/10 share from the third partner only, what will be the sacrificing ratio of the old partners?

Answer and explanation

Correct answer: 0:0:1

The sacrificing ratio is the ratio of the profit shares surrendered by the old partners. Here, the first and second partners surrender nothing, while the third partner gives the entire 1/10 share to the incoming partner. Hence, the sacrificing ratio is 0:0:1. Remember that 1/10 is the incoming partner’s acquired share, not the sacrificing ratio.

Related tags

Sacrificing RatioAdmission Of PartnerOld PartnersProfit Sharing RatioNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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