CSEET · Fundamentals of Accounting · Partnership and LLP Accounts
A and B are partners sharing profits equally. They admit C for a 1/4 share. A and B agree to sacrifice in the ratio 2:1 to give C his share. What is the sacrificing share of A?
A's sacrifice is 1/6. C's 1/4 share is given up by A and B in the ratio 2:1, so A gives 2/3 of 1/4, which equals 1/6, and B gives 1/12.
- A1/8
- B1/6Correct
- C1/4
- D1/12
Explanation
C's 1/4 share is contributed by A and B in the ratio 2:1. A sacrifices 2/3 x 1/4 = 1/6 and B sacrifices 1/3 x 1/4 = 1/12. The 1/8 option wrongly treats the sacrifice as equal, which is not what was agreed.
Did you get it right without looking?
One question tells you little. A timed set on Partnership and LLP Accounts shows your real accuracy, how long you take and where you lose marks.
More Partnership and LLP Accounts questions
- P, Q and R share profits in the ratio 2:2:1. R dies and the partnership continues. Under Section 35 of the Indian Partnership Act, 1932, whe…
- Ravi and Meena are partners in Sunrise Traders LLP. Ravi, who has no authority to act for the LLP, signs a purchase contract with a supplier…
- Under the Indian Partnership Act, 1932, a minor can be admitted to a firm in which of the following ways?
- X, Y and Z share profits equally. Z retires. Goodwill of the firm is valued at Rs 90,000. X and Y will share future profits in the ratio 3:2…
- Ramesh and Suresh have fixed capitals. At the year end, Ramesh's current account showed an opening credit of Rs 10,000. During the year it w…
- A partnership deed is silent on interest on partner's loan. Anil has lent ₹2,00,000 to the firm at the start of the year, as an advance beyo…