A, B and C want to reconstitute their partnership firm. They were sharing profits in the ratio 3:2:1. They decided to change it to 1:1:1. Calculate their sacrificing/gaining ratio.

A Sacrifices and C Gains by 1/6

The correct answer is option 1- A Sacrifices and C Gains by 1/6.

Old ratio of A, B and C = 3:2:1
New ratio of A, B and C = 1:1:1

Sacrifice share = Old share - New share

Sacrifice of A = 3/6 - 1/3
                     = (3-2)/6
                     = 1/6

Sacrifice of B = 2/6 - 1/3
                     = (2-2)/6
                     = 0

Sacrifice of C = 1/6 - 1/3
                     = (1-2)6
                     = -1/6 ( As this is negative so it is not sacrifice, it is a gain)

Thus, A sacrifices by 1/6 and C gains by 1/6.