P & Q are partners sharing profits and losses in the ratio of 4:3. They decided to admit R for one-sixth share in profit. Calculate their new PSR. Also calculate Sacrifice Ratio
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Explanation:
Sacrifice Ratio: Old ratio- New ratio.
In the given case,
P:Q Old Ratio= 4/7 : 3/7
P:Q New Ratio= 7/14 : 4/14
Therefore,In case of 'P', Sacrifice Ratio: 4/7 -7/14 =1/14
In case of 'Q', Sacrifice Ratio: 3/7 - 4/14 = 2/14
Hence, the sacrifice ratio of P : Q = 1:2
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