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.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 2:3
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Old partners: A and B
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Old ratio = 3 : 2
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New partner M admitted for 1/4 share
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Remaining share for A and B = 1 – 1/4 = 3/4
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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