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The new shares of two old partners are 3/8 and 1/4, and the new partner’s share is 3/8. If the old ratio of the two partners was 2:1, what is their sacrificing ratio?

Answer and explanation

Correct answer: 7:2

The governing concept is sacrificing ratio: sacrifice by an old partner equals the old share minus the new share. The old ratio 2:1 gives old shares of 2/3 and 1/3. For the first partner, sacrifice is 2/3 − 3/8. Using denominator 24, this is 16/24 − 9/24 = 7/24. For the second partner, sacrifice is 1/3 − 1/4 = 4/12 − 3/12 = 1/12 = 2/24. Therefore the sacrificing ratio is 7/24:2/24, or 7:2. The sacrifices together equal 9/24 = 3/8, exactly the incoming partner’s share, which confirms the calculation. Option A is correct. The other options confuse the old ratio with the sacrificing ratio or fail to use the stated new shares.

Related tags

Sacrificing-RatioOld-And-New-SharesAdmission-Of-PartnerNew Profit Sharing RatioReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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