Question

Nimesh, Nisha, and Anisha are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from $1^{st}$April 2021 they agreed to share profits in the ratio of 4 : 3 : 2. Due to change in profit sharing ratio, A’s gain or sacrifice will be:

[0.88 marks]

• A. 4/9 (Gain)
• B. 4/9 (Sacrifice)
• C. 1/18 (Gain)
• D. 1/18 (Sacrifice)

Answer 1

The correct option is D 1/18 (Sacrifice)

Gaining Share = New Share - Old Share
A’s Gain/(Sacrifice) = 4/9 - 3/6
= 1/18 (S)