Question

AL PROBLEMS
Very Short Answer/Short Answer Type Questions
Sacrificing and Gaining Ratio
1. C and D share profits and losses in the ratio of 2 : 1. With effect from 1st April, 2019, they agreed
to share profits equally. Calculate the sacrificing ratio and gaining ratio.
[Ans. Sacrifice of C = 1/6, Gain of D = 1/6]
2. R. Sand Tare partners sharing profits in the ratio of 5:3:2. They agree to share profits in equal
proportion w.e.f. April 1, 2019. You are required to determine sacrificing ratio and the gaining
ratio for R, S and T.
(Ans. R's Sacrifice 5/30, S's Gain 1/30, T's Gain 4/30]
3. 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.
[Ans. A Gains 3/28; B Gains 1/28; C Sacrifices 1/28, D Sacrifices 3/28]
4. A, B and C are partners sharing profits in the ratio of 5: 3:2. Calculate the new profit-sharing
ratio and the sacrificing ratio in each of the following cases :
Case 1: If C acquires 1/5th share from A.
Case II : If C acquires 1/5th share equally from A and B.
[Ans. Case I: New Ratio 3/10 : 3/10 : 4/10 or 3:3 : 4. A Sacrifice = 1/5, C Gained = 1/5
Case II : New Ratio 4/10 : 2/10 : 4/10 or 4: 2:4 or 2:1:2.
Sacrificing Ratio between A and B = 1/10 : 1/10 or 1: 1.)
5. X, Y and Z are partners in a firm in the ratio of 2:3:5. On 31st March, 2019 the following
proposals are under consideration. You are required to find out change in the ratio of each
partner:
(i) New ratio will be 2: 5:3.
(ii) Z will give 10% of his share to X.
[Ans.(i) X : No change, Y Gains 2/10, Z Sacrifices 2/10.
(ii) X's Gains 1/20, Y No change, Z's Sacrifices 1/20.]
Accounting for Distribution of Accumulated Profits and Reserves
profits and​

Answer 1

Solution 1 :-

Old profit sharing ratio = 2:1

New profit sharing ratio = 1:1

""Sacrificed profit share = old profit share - new profit share ""

C = 2/3 - 1/2 = 1/6 (sacrificing)

D = 1/3 - 1/2 = -1/6 ( gain)

Solution 2 :-

Old profit sharing ratio = 5:3:2

New profit sharing ratio = 1:1:1

""Sacrificed profit share = old profit share - new profit share ""

R = 5/10 - 1/3 = 5/30(sacrificing)

S = 3/10 - 1/3 = -1/30( gain)

T= 2/10-1/3= -4/30 (gain)

Solution 3 :-

Old profit sharing ratio = 1:1:1:1

New profit sharing ratio = 5:4:3:2

""Sacrificed profit share = old profit share - new profit share ""

A = 1/4 - 5/56 = -3/28 (gain)

B = 1/4 - 4/56 = -1/28 ( gain)

C = 1/4 - 3/14 = 1/28 (sacrifice)

D = 1/4 - 2/14 = 3/28 (sacrifice)