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.
Answer & explanation
Correct answer: option 1
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.