Home » mcq » accounting » A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. They admit D for $$\frac{1}{3}$$ profit of the firm. The sacrificing ratio of A, B and C will be:
03:02:01
04:02:01
04:03:02
05:03:02
Answer is Wrong!
Answer is Right!
The correct answer is $\boxed{\text{C. }4:3:2}$.
The sacrificing ratio is the ratio in which the old partners agree to sacrifice their share of the profits in order to admit a new partner. It is calculated by subtracting the new partner’s share of the profits from
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the old partners’ original share of the profits.
In this case, the new partner is admitted for $\frac{1}{3}$ of the profit. This means that the old partners’ original share of the profits is reduced by $\frac{1}{3}$.
The sacrificing ratio is therefore:
$A:B:C = \frac{4}{3} – \frac{1}{3} : \frac{3}{3} – \frac{1}{3} : \frac{2}{3} – \frac{1}{3} = 4:3:2$
Here is a brief explanation of each option:
- Option A: $3:2:1$. This is not the correct answer because it does not take into account the new partner’s share of the profits.
- Option B: $4:2:1$. This is not the correct answer because it does not take into account the new partner’s share of the profits.
- Option C: $4:3:2$. This is the correct answer because it takes into account the new partner’s share of the profits.
- Option D: $5:3:2$. This is not the correct answer because it does not take into account the new partner’s share of the profits.