Question

Mahesh and Suresh are partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st April 2021 they agreed to share profits and losses equally. Individual partner’s gain or sacrifice due to change in the ratio will be:

[0.88 marks]

• A. Sacrifice by Mahesh 1/6; Sacrifice by Suresh 1/6
• B. Sacrifice by Mahesh 1/6; Gain by Suresh 1/6
• C. Gain by Mahesh 1/6; Sacrifice by Suresh 1/6
• D. Gain by Mahesh 1/6; Gain by Suresh 1/6

Answer 1

The correct option is B Sacrifice by Mahesh 1/6; Gain by Suresh 1/6

$\text{Gaining Share = New Share - Old Share}$
$\text{Mahesh’s Gain/(Sacrifice)}=1/2-2/3$
$=1/6\text{(S)}$
$\text{Suresh’s Gain/(Sacrifice)}=1/2-1/3$
$=1/6\text{(G)}$