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A and B share profits in the ratio 11:7. C takes a 1/6 share, taking 1/9 from A and the balance from B. What is the sacrificing ratio?

Answer and explanation

Correct answer: 2:1

The governing concept is that the sacrificing ratio is based on the actual shares surrendered by the old partners, not automatically on their old profit-sharing ratio. C receives a total share of 1/6. A gives 1/9, so B gives the balance: 1/6 − 1/9 = 3/18 − 2/18 = 1/18. Therefore, A sacrifices 1/9 = 2/18 and B sacrifices 1/18. The sacrificing ratio is consequently 2/18 : 1/18 = 2:1. Option A is correct. Option B reverses A’s and B’s sacrifices; option C merely repeats the old ratio 11:7; and option D incorrectly assumes that both partners surrender equal fractions.

Related tags

Sacrificing RatioShare SurrenderedNew Partner AdmissionGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 McqNew Profit Sharing Ratio

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