Question

Nikhil, Arun, and Mansi were partners in a firm sharing profits and losses in the ratio of \( 4 : 3 : 3 \). With effect from 1\textsuperscript{st April, 2023, they decided to share profits and losses in the ratio of \( 5 : 3 : 2 \). Due to the 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:

A positive change indicates a gain, while a negative change indicates a sacrifice.

Answer 1

The Correct Option is C

The change in share is calculated as: \[ \text{Change in Share} = \text{New Ratio} - \text{Old Ratio}. \] For Mansi: \[ \text{Change} = \frac{2}{10} - \frac{3}{10} = -\frac{1}{10}. \] Since the value is negative, Mansi sacrifices \( \frac{1}{10} \).