Question

Anisha, Deepa, and Charu were partners sharing profits and losses in the ratio of 5:3:2. On 31st March 2024, they decided to change their profit-sharing ratio to 2:3:5. Each partner's gain or sacrifice due to the change in profit-sharing ratio will be:

• A. Anisha’s sacrifice \(\frac {3}{10}\) ; Charu’s gain \(\frac {3}{10}\)
• B. Anisha’s gain \(\frac {3}{10}\) ; Charu’s sacrifice \(\frac {3}{10}\)
• C. Anisha’s sacrifice \(\frac {3}{10}\); Deepa’s gain \(\frac {3}{10}\)
• D. Deepa’s gain \(\frac {3}{10}\); Charu’s sacrifice \(\frac {3}{10}\)

Hint:

Remember: To calculate sacrifice or gain, use the formula Old Share - New Share. - A positive result means a sacrifice. - A negative result means a gain. The total sacrifice must always equal the total gain.

Answer 1

The Correct Option is A

To assess each partner's gain or loss from the revised profit-sharing ratio, we calculate the difference between their previous and current ratios.

Original Ratio: Anisha 5/10, Deepa 3/10, Charu 2/10.

Revised Ratio: Anisha 2/10, Deepa 3/10, Charu 5/10.

The gain or sacrifice for each partner is calculated as follows:

• Anisha's Adjustment: Original ratio - Revised ratio = 5/10 - 2/10 = 3/10 (sacrifice)
• Deepa's Adjustment: Original ratio - Revised ratio = 3/10 - 3/10 = 0 (no change)
• Charu's Adjustment: Revised ratio - Original ratio = 5/10 - 2/10 = 3/10 (gain)

Summary: Anisha sacrifices 3/10, while Charu gains 3/10.