Question

Alpha, Beta and Theta partners sharing profits and losses in the ratio of 1:1:1. They decided to change their

profit and loss sharing ratio to 3:2:1. Find sacrifice ratio​

Answer 1

New Profit sharing Ratio = 3:2:1

Calculate of Sacrificed Profit Share of each Partner :

Sacrificed Profit Share = Old Profit Share - New Profit Share

Alpha Sacrifice = (1/3) - (3/6)

= -(1/6) (Gain)

Beta Sacrifice = (1/3) - (2/6)

= NIL

Theta Sacrifice = (1/3) - (1/6)

= (1/6) (Sacrifice)

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