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 equally. Calculate each partner's gain or sacrifice due to the change in ratio.

Answer 1

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