A and B share profits in 3 : 2. They admit C as a new partner and new profit sharing ratio between them becomes 2 : 1 : 2. Determine the sacrificing ratio between A and B.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 1:1.
Old ratio = 3:2 (A & B)
New ratio = 2:1:2 (A, B & C)
Sacrifice = Old share - New share
Sacrifice of A = 3/5 - 2/5
= 1/5
Sacrifice of B = 2/5 - 1/5
= 1/5
Sacrificing ratio = 1/5 :1/5
= 1:1