X, Y and Z are partners in 6:5:3. On April 1st 2021, it was decided that, the future ratio between X and Y will be 2:1. It was further decided that the ratio between Y and Z will be same as between X and Y. What will be the Sacrifice/Gain by Z due to change in profit sharing ratio?
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Given,
x:y:z= 6:5:3
the future ratio between X and Y will be 2:1
the ratio between Y and Z will be same as between X and Y
new ratio,
x:y= 2:1
y:z=2:1
Solution,
x/y= 2 (given )
=>y= x/2 -(i)
also,
y/z = 2
=> z=y/2
=> z= x/4 {from eq. (i) } -(ii)
Now,
we have, x:y:z = x: (x/2) : (x/4)
or, x:y:z = 4:2:1 , is the new ratio formed.
Then,
old ratio - new ratio
(6:5:3) - (4:2:1)
(6\14 : 5/14 : 3/14) -( 4/7 : 2/7 : 1/7 )
change in z's profit share,
=(3/14)- (1/7)
=( 3-2)/14
=1/14
the Sacrifice by Z due to change in profit sharing ratio is 1/14 or, 0.0714
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