A and B are partners in a firm sharing profits in the ratio of . They admit C as a partner for a share. The sacrificing ratio between A and B is:
- A3:2
- B1:1
- C2:3
- D3:1
Solution & Step-by-step Explanation
In the absence of any information regarding how the new partner acquires their profit share from the existing partners, it is assumed that the old partners sacrifice in their old profit-sharing ratio. Therefore, the sacrificing ratio between A and B matches their old ratio of .