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Old partners share in (5:1:4). A new partner receives (1/10) share from the first and (1/5) share from the third. What does the second partner do?

Answer and explanation

Correct answer: Makes no sacrifice

The old partners share profits in the ratio 5:1:4. The new partner receives 1/10 from the first partner and 1/5 from the third partner. These two specified sacrifices together form the new partner’s entire share. Since no part is taken from the second partner, the second partner’s profit share does not decrease. Therefore, the second partner makes no sacrifice, so option A is correct.

A sacrifice is the amount of an old partner’s share transferred to the incoming partner. The first partner gives 1/10 and the third gives 1/5, while the second gives 0. It is not necessary for every old partner to sacrifice. The second partner neither loses a share nor gains one merely because another partner is admitted; the information directly states that the transfer comes only from the first and third partners.

Related tags

ConceptualNo SacrificeSelective Acquisition

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