X ,Y and Z are sharing profits and losses in the ratio of 5 :3:2.With effect from 1st April, 2019. they decide to share profits and losses equally Calculate each partner's gain or saurifice due to the changes in the ratio.
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Class 12
>>Accountancy
>>Reconstitution of a Partnership Firm - Retirement / Death of a Partner
>>Gaining Ratio of the Remaining Partners
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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 equally. Calculate each partner's gain or sacrifice due to the change in ratio.
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Solution
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Gaining ratio or sacrificing ration will be calculated as:
Gaining/Sacrificing Ratio = New Ratio - Old Ratio
Therefore:
For X = 1/3 - 5/10
= 10 - 15
30
= - 5/30 Sacrificing Ratio
For Y = 1/3 - 3/10
= 10 - 9
30
= 1/30 Gaining Ratio
For Z = 1/3 - 2/10
= 10- 6
30
= 4/30 Gaining Ratio