Question

A and B shares 5 ratio 3 and c admit for 1/6 shar sacrifise ratio

Answer 1

Answer:

Sacrifice Ratio = 5:3

Explanation:

Sacrificing Ratio :

Sacrificing ratio is the ratio in which old o

existing partners forego, i.e., sacrifice their share of profit in favour of the new or incoming partner.

Sacrificing Ratio = Old Ratio – New Ratio

A's old share = 5/8

B's old share = 3/8

Firm’s share = 1

Remaining share = 1 - C's share

= 1 - 1/6 = 5/6

Now,

A’s new share = 5/8 X 5/6 = 25/48

B’s new share = 3/8 X 5/6 = 15/48

C's share = 1/6 X 8/8 = 8/48

New Ratio = A:B:C

= 25/48 : 15/48 : 8/48

= 25:15:8

Sacrifice Ratio of A

= 5/8 - 25/48

= 5/48

Sacrifice Ratio of B

= 3/8 - 15/48

= 3/48

Sacrifice Ratio = 5:3