A and B are the partners who decided to share their profits and losses in the ratio 4:3 in future. Due to change in profit sharing ratio, A is gaining and B is sacrificing by 1/14 . What was their old Ratio?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 1:1.
New ratio = 4:3
A gains by 1/14
B sacrifices by 1/14
Old ratio = New share - Gained share/ + sacrificed share
A's old share = 4/7 - 1/14
= (8-1) /14
= 7/14
B's old share = 3/7 + 1/14
= (6+1) /14
= 7/14
Old ratio = 7/14 :7/14
= 1:1