Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4 : 3. They admitted Mohan as a new partner. The profit sharing ratio of Ramesh, Suresh and Mohan will be 2 : 3 : 1. Choose the correct option with regards to the gain or sacrifice of old partner-
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Ramesh's sacrifice = 10/42
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Old ratio (Ramesh : Suresh) = 4 : 3 → Ramesh = 4/7, Suresh = 3/7
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New ratio (Ramesh : Suresh : Mohan) = 2 : 3 : 1 → Total = 6 parts
→ Ramesh = 2/6 = 1/3, Suresh = 3/6 = 1/2, Mohan = 1/6
- Sacrifice/Gain=Old Share−New Share
- Sacrifice of Rramesh : 4/7 - 1/3 = 5/21 = 10/42
- Sacrifice of Suresh = 3/7 - 1/2 = -1/14 = -3/42
- Since the result is negative, Suresh gains -3/42 of the profit.