A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. They admit C into…
Originally, A and B shared profits in the ratio 3:2, so their old shares were 3/5 and 2/5. After admitting C for a 1/4 share, the remaining 3/4 share is divided between A…
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A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. They admit C into partnership for ¼ share and the new ratio between A and B is 2 : 1. The sacrificing ratio is
Answer and explanation
Correct answer D
Originally, A and B shared profits in the ratio 3:2, so their old shares were 3/5 and 2/5. After admitting C for a 1/4 share, the remaining 3/4 share is divided between A and B in their new ratio of 2:1, giving A a new share of (3/4) × (2/3) = 2/4 = 10/20 and B a new share of (3/4) × (1/3) = 1/4 = 5/20. Subtracting the new shares from the old shares gives A's sacrifice = 12/20 − 10/20 = 2/20 and B's sacrifice = 8/20 − 5/20 = 3/20, resulting in a sacrificing ratio of 2 : 3.
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UGC NET Commerce