Accountancy Part AAdmission of a Partner

A and B are partners in a firm sharing profits in the ratio of 3:2. T…

A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a partner for 1/3 share. the sacrificing ratio between A and B is:

Answer & explanation

Correct answer: option 1

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

The sacrificing ratio is the ratio in which the old partners give up their shares to the new partner. When the question does not say how C acquires his share, he is taken to get it from A and B in their old profit sharing ratio, so the sacrificing ratio is the old ratio.

A sacrifices 3/5 × 1/3 = 3/15
B sacrifices 2/5 × 1/3 = 2/15
Sacrificing ratio of A and B = 3/15 : 2/15 = 3:2

NCERT (2026-27 edition):
New Profit Sharing Ratio – “When new partner is admitted he acquires his share in profits from the old partners. In other words, on the admission of a new partner, the old partners sacrifice a share of their profit in favour of the new partner. But, what will be the share of new partner and how he will acquire it from the existing partners is decided mutually among the old partners and the new partner. However, if nothing is specified as to how does the new partner acquire his share from the old partners; it may be assumed that he gets it from them in their profit sharing ratio.”