Question

P and q are sharing profit and losses equally. With effects from current year they decided to share profits in the ratio if 4:3 calculate individual partner gain and sacrifice

Answer 1

Given:

• P and Q are partners in a firm, sharing profits and losses equally.
• They decided to share their profits and losses in the ratio 4:3.

To find: The gain/sacrifice of each partner.

Answer:

Since they were previously sharing their profits and losses equally, their ratio was 1:1.

• P's old share = 1/2
• Q's old share = 1/2

• P's new share = 4/7
• Q's new share = 3/7

Calculation of gain/sacrifice:

Gain/Sacrifice = Old share - New share

• If the difference is positive, it indicates a sacrifice.
• If the difference is negative, it indicates a gain.

For P:

• Gain/Sacrifice = 1/2 - 4/7 = (7 - 8)/14 = -1/14 [Gain]

For Q:

• Gain/Sacrifice = 1/2 - 3/7 = (7 - 6)/14 = 1/14 = [Sacrifice]

Therefore, P gains by 1/14 and Q sacrifices by 1/14.