A & B are partners sharing profits in ratio of 5:3. A surrenders 1/20th share of his share whereas B surrenders 1/24th of his share in favour of C, who is admitted as a new partner. Calculate sacrificing ratio?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 2:1.
Old ratio 5:3
A surrenders 1/20th share of his share whereas B surrenders 1/24th of his share in favour of C.
A surrender = 5/8 x 1/20
= 1/32
B surrenders = 3/8 x 1/24
= 1/64
So, sacrificing ratio = 1/32:1/64 or 2/64 :1/64
= 2:1