Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

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?

Options:

1:2

3:2

2:1

4:1

Correct Answer:

2:1

Explanation:

Old ratio 5:3
A surrender = 5/8*1/20 = 1/32
B surrenders = 3/8*1/24=1/64
So, sacrificing ratio will be 1/32:1/64 = 2:1