Question

A and B are partners in a firm sharing profits and losses equally. They decided to share profits in the ratio of 3:2 in future . A's sacrifice/ gain will be

Answer 1

Answer:

3/2 = 1.5

Explanation:

A's sacrifice/gain will be 1.5 times that of B's

Answer 2

Explanation:

Solution :

★ Old Ratio :

A : B = 1 : 1

• A's Share = 1/2
• B's Share = 1/2

They decided to share profits in the ratio of 3:2 in future.

★ New Profit Sharing Ratio :

A : B = 3 : 2

• A's New Share = 3/5
• B's New Share = 2/5

★ Sacrifice or Gain Ratio = Old Ratio - New Ratio

• A = 1/2 - 3/5

= (5 - 6)/10

= (-1/10) ---------- (Gain)

A's Gain = 1/10

Gain by A = 1/10

Therefore, A's Gain will be 1/10