A and B are partners in a firm sharing profits in the ratio of 3:2. They admitted M as a new partner for 1/4 share. The new profit sharing ratio between A and B will be 2:1. Calculate their sacrificing ratio.

2:3

The correct answer is Option (1) → 2:3

• Old partners: A and B

• Old ratio = 3 : 2

• New partner M admitted for 1/4 share

• Remaining share for A and B = 1 – 1/4 = 3/4

• A and B will now share this 3/4 in the new ratio 2 : 1

A’s new share=2/ 3 * 3/4 = 1/2

B’s new share= 1/3 * 3/4 = 1/4

So the new ratio = A : B : M = 1/2 : 1/4 : 1/4 or 2 : 1 : 1

A’s old share= 3/5

B’s old share= 2/5

A’s sacrifice= 3/5- 1/2 = 1/10

B’s sacrifice= 2/5- 1/4 = 3/20

Sacrificing Ratio = A : B = 2 : 3