Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

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.

Options:

1 : 1

3 : 2

2 : 1

1 : 2

Correct Answer:

1 : 1

Explanation:

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