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 in the ratio of $5:2:3$ Calculate each partner's gain or sacrificed 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 = 5/10 - 5/10

= 5 - 5

10

= No Change

For Y = 2/10 - 3/10

= 2 - 3

10

= 1/10 Sacrificing Ratio

For Z = 3/10 - 2/10

= 3 - 2

10

= 1/10 Gaining Ratio