Question

A and B are partners in firm sharing profits in the ratio of 4 : 3. They admit C as a new partner. New Ratio will be 2 : 3 : 1. Sacrificing ratio will be:

Options

• Only B is sacrificing

• Only A is sacrificing

• 2 : 3

• 4 : 3

Answer 1

Only A is sacrificing

Explanation:

Calculation of sacrificing ratio of partners:

Old Ratio = 4 : 3

New Ratio = 2 : 3 : 1

Sacrificing ratio = Old ratio − New ratio

Sacrificing ratio of A = `4/7 - 2/6 = 10/42`

Sacrificing ratio of B = `3/7 - 3/6 = 3/42` (Gain)