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A and B share profits and losses in the ratio of 3:1 . C is admitted into partnership for 1/4 share .The sacrificing ratio of A And B is:?
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A and B share profits and losses in the ratio of 3:1 . C is admitted i...
Understanding the Profit-Sharing Ratio
In a partnership, when a new partner is admitted, the existing partners may need to sacrifice some of their profit share. Here, A and B originally share profits in a ratio of 3:1. When C is admitted for a 1/4 share, it is essential to determine the sacrificing ratio of A and B.
Step 1: Calculate Total Profit Sharing Ratio
- A's share = 3 parts
- B's share = 1 part
- Total parts = 3 + 1 = 4 parts
Step 2: Determine C's Share
- C's share = 1/4
- To find the equivalent in parts:
- Total share = 1 (whole)
- C's share in parts = 1/4 of total parts (4)
- C's share in parts = 1 part
Step 3: Calculate Remaining Share for A and B
- Remaining share for A and B = Total parts - C's parts
- Remaining share = 4 - 1 = 3 parts
Step 4: Distribute Remaining Share between A and B
- A's remaining share = 3 parts out of 3 total = 3/3 = 1 (100%)
- B's remaining share = 1 part out of 3 total = 1/3
Step 5: Calculate Sacrificing Ratio
- A's original share = 3/4 (or 3 parts out of 4)
- B's original share = 1/4 (or 1 part out of 4)
- A's sacrifice = Original share - New share = 3/4 - 3/4 = 0
- B's sacrifice = Original share - New share = 1/4 - 0 = 1/4
Final Sacrificing Ratio
- A sacrifices nothing (0), while B sacrifices 1/4.
- Hence, the sacrificing ratio of A and B is 0:1.
This shows how existing partners adjust their shares when a new partner joins.
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A and B share profits and losses in the ratio of 3:1 . C is admitted into partnership for 1/4 share .The sacrificing ratio of A And B is:?
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A and B share profits and losses in the ratio of 3:1 . C is admitted into partnership for 1/4 share .The sacrificing ratio of A And B is:? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A and B share profits and losses in the ratio of 3:1 . C is admitted into partnership for 1/4 share .The sacrificing ratio of A And B is:? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B share profits and losses in the ratio of 3:1 . C is admitted into partnership for 1/4 share .The sacrificing ratio of A And B is:?.
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