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Shift 25/05/2023 8:30 AM - 10:30 AM
Correct Answer
When a new partner (C) is admitted and the new profit-sharing ratio is established as 2:1:2 between A, B, and C, the sacrificing ratio for existing partners A and B is determined by comparing their old ratio with their new ratio.
The old profit-sharing ratio between A and B is 3:2, and the new ratio between A and B is 2:1. The change in the ratio for both A and B can be calculated as follows:
For A: Old ratio (3:2) - New ratio (2:1) = 1:1 For B: Old ratio (3:2) - New ratio (2:1) = 1:1
Therefore, the sacrificing ratio for both A and B is 1:1,
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