A and B were partners in a firm sharing profit or loss equally. They agreed to share profits in the ratio of 4:5. Due to change in profit sharing ratio, A’s gain or sacrifice will be:

1/18 gain 1/18 sacrifice 1/4 gain 1/4 sacrifice

1/18 sacrifice

Sacrificing Ratio= Old Ratio – New Ratio A = 1/2 -4/9 = 1/18 (sacrifice)