Question

X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2018, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each Partner’s gain or sacrifice due to the change in ratio.

Answer 1

Solution:

Old Ratio(X, Y and Z)= 5 : 3 : 2

New Ratio( X, Y and Z)= 5 : 2 : 3

Sacrificing(or Gaining)Ratio= Old Ratio - NewRatio

X' s Share = $\frac{5}{10} -\frac{5}{10}$ = NIL

Y' s Share = $\frac{3}{10} -\frac{2}{10}$ = $\frac{1}{10}$ (Sacrifice )

Z' s  Share= $\frac{2}{10} -\frac{3}{10}$ (Gain)

Z's Gain = 1 / 10 and Y's Sacrifice = 1 / 10