A, B, C and D are partners sharing profits in equal proportions. They decide to share the profits in the ratio of 5:4:3:2 in future. You are required to calculate sacrificing ratios and the gaining ratios for the partners
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Explanation:
A, B, C and D are partners sharing profits in equal proportions. They decide to share the profits in the ratio of 5:4:3:2 in future. You are required to calculate sacrificing ratios and the gaining ratios for the partners
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Explanation:
Old ratio (A, B C and D) = 5 : 4 : 3 : 2
New ratio (B, C, and D) = 1 : 1 : 1
Gaining ratio = New ratio - Old ratio
B's gain = (1/3) - (4/14) = 2/14
C's gain = (1/3) - (3/14) = 5/14
D's gain = (1/3) - (2/14) = 8/14
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