Question

Nikhil, Arun and Mansi were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. With effect from 1st April, 2023, they decided to share profits and losses in the ratio of 5 : 3 : 2. Due to change in the profit sharing ratio, Mansi’s gain or sacrifice will be:

• A. Gain \( \frac{1}{10} \)
• B. Sacrifice \( \frac{3}{10} \)
• C. Sacrifice \( \frac{1}{10} \)
• D. Gain \( \frac{3}{10} \)

Hint:

The sacrifice or gain of a partner is determined by the difference in their old and new profit-sharing ratios.

Answer 1

The Correct Option is C

To calculate Mansi’s sacrifice or gain, we need to first find her old share and new share of profits. - Old share of Mansi = \( \frac{3}{10} \) - New share of Mansi = \( \frac{2}{10} \) Mansi’s sacrifice = \( \frac{3}{10} - \frac{2}{10} = \frac{1}{10} \)