A, B & C are partners sharing profits in the ratio of 3:3:4. They decide to share the profits equally. The sacrifice or gain of partners are:
Answer & explanation
Correct answer: option 1
The correct answer is option 1 - A gains 1/30, B gains 1/30, C sacrifices 2/30.
OLD RATIO = 3:3:4 (A, B & C)
NEW RATIO = 1:1:1 (A, B & C)
Sacrifice = Old share - New share
A's sacrifice = 3/10 - 1/3
= (9-10)/30
= -1/30 (gain)
This figure is in negative means it is a gain.
B's sacrifice = 3/10 - 1/3
= (9-10)/30
= -1/30 (gain)
This figure is in negative means it is a gain.
C's sacrifice = 4/10 - 1/3
= (12-10)/30
= 2/30
Thus A & B gains by 1/30 each and C sacrifice by 2/30.