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Question

Accountancy Question on Profit sharing ratio

S and T are partners in a firm sharing profits in the ratio of 3:2. They admit U as a new partner. S surrenders 14\frac{1}{4} of his share and T surrenders 1/3 of his share in favour of U. Sacrificing ratio of S and T will be:
Choose the correct answer from the options given below:

A

9:8

B

1:1

C

3:2

D

3:4

Answer

9:8

Explanation

Solution

To find the sacrificing ratio of S and T, we first need to calculate their original profit shares and the shares they surrender. 1. Original Shares: - S's share = 35\frac{3}{5} (since 3 + 2 = 5) - T's share = 25\frac{2}{5} 2. Shares Surrendered: - S surrenders 14\frac{1}{4} of his share: S’s surrender=14×35=320\text{S's surrender} = \frac{1}{4} \times \frac{3}{5} = \frac{3}{20} - T surrenders 13\frac{1}{3} of his share: T’s surrender=13×25=215\text{T's surrender} = \frac{1}{3} \times \frac{2}{5} = \frac{2}{15} 3. Finding the Sacrificing Ratio: To find the sacrificing ratio, we need a common denominator. The LCM of 20 and 15 is 60. - Convert S's surrender: 320=960\frac{3}{20} = \frac{9}{60} - Convert T's surrender: 215=860\frac{2}{15} = \frac{8}{60} 4. Sacrificing Ratio: The sacrificing ratio of S and T: Sacrificing ratio=S’s surrenderT’s surrender=98=9:8\text{Sacrificing ratio} = \frac{\text{S's surrender}}{\text{T's surrender}} = \frac{9}{8} = 9 : 8 Thus, the sacrificing ratio of S and T will be 9 : 8.