Question

A and B are partners in a firm with profit sharing ratio 2:3, they admit C as a partner for 1/4th share of profit. What would be the sacrificing ratio of A and B?

• A. 1:1
• B. 2:3
• C. 3:2
• D. 5:2

Answer 1

The correct option is B 2:3

Sacrificing Ratio= Old Ratio- New Ratio.

Old Ratio: A= $2$/$5$, B= $3$/$5$

New Ratio is calculated as follows:

C's Ratio= $1$/$4$

Therefore, existing partners' ratio= $1$-$1$/$4$= $3$/$4$

$3$/$4$ is to be divided amongst the old partners.

1.A= $2$/$5$ of $3$/$4$=$6$/$20$

2.B=$3$/$5$ of $3$/$4$= $9$/$20$

3. C= $1$/$4$ to be written as $5$/$20$ for equation.

Hence, the new ratio is 6:9:5

Sacrificing Ratio for A = $2$/$5$-$6$/$20$=$2$/$20$

Sacrificing Ratio for B = $3$/$5$-$9$/$20$=$3$/$20$.

Sacrificing Ratio= 2:3