Question

A, B and C are equal partners in the firm. It is now agreed that they will share the future profits in the ratio 5 : 3 : 2. Sacrificing ratio and gaining ratio of different partners will be:

Options

• `A  "Sacrifice"  5/30; B  "Gain"  1/30; C  "Gain"  4/30`

• `A  "Gain"  5/30; B  "Sacrifice"  4/30; C  "Sacrifice"  1/30`

• `A  "Gain"  5/30; B  "Sacrifice"  1/30; C  "Sacrifice"  4/30`

• `A  "Sacrifice"  5/30; B  "Gain"  4/30; C  "Gain"  1/30`

Answer 1

`bb(A  "Gain"  5/30; B  "Sacrifice"  1/30; C  "Sacrifice"  4/30)`

Explanation:

Given:

Old ratio (equal partners) = 1 : 1 : 1

New ratio = 5 : 3 : 2

Step 1: Find the old share

Since all are equal,

`A = B = C = 1/3 = 10/30`

Step 2: Find the new share

Total of new ratio = 5 + 3 + 2 = 10

`A = 5/10 = 15/30`

`B = 3/10 = 9/30`

`C = 2/10 = 6/30`

Step 3: Compare old and new shares

Partner	Old	New	Gain/Sacrifice
A	`10/30`	`15/30`	Gain `5/30`
B	`10/30`	`9/30`	Sacrifice `1/30`
C	`10/30`	`6/30`	Sacrifice `4/30`