A and B were partners in a firm sharing profits in the ratio 3:2. They decided to share profits equally from 1st April. Who will gain and sacrifice?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- B - Gaining A - Sacrificing.
Old ratio = 3:2
New ratio = 1:1
S.R = Old - New
A = 3/5 - 1/2
= (6-5)/10
=1/10 (Sacrifice)
B = 2/5 - 1/2
= (4 - 5)/10
= -1/10 (Gain)
Thus, A sacrifices and B gains.