A and B are partners sharing profit equally. On 1st April they decided to share the profit in the ratio of 4:3. Due to change in profit sharing ratio A's gain or sacrifice will be
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Answer:
A is gaining
Explanation:
Old profit sharing ratio is equal ie. 1:1
New profit sharing ratio is 4:3
Sacrifice / gain of a is = old ratio - new ratio
1/2-4/7=-1/2(gain)
If minus sign comes its a gain.
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