Question

Mahesh, Naresh and Om were partners sharing profits in the ratio of 2 : 3 : 4. With effect from 1st April, 2023 they agreed to share profits in the ratio of 1 : 2 : 3. Calculate each partner's gain or sacrifice due to change in ratio.

Answer 1

Old ratio:

Mahesh : Naresh : Om = 2 : 3 : 4

Total:

2 + 3 + 4 = 9

So old shares are:

`"Mahesh" = 2/9, "Naresh" = 3/9 = 1/3, "Om" = 4/9`

New ratio:

1 : 2 : 3

Total:

1 + 2 + 3 = 6

So new shares are:

`"Mahesh" = 1/6, "Naresh" = 2/6 = 1/3, "Om" = 3/6 = 1/2`

We use:

Sacrifice = Old Share − New Share

Mahesh

`2/9 - 1/6`

LCM of 9 and 6 = 18:

`2/9 = 4/18, 1/6 = 3/18`

`4/18 - 3/18 = 1/18`

So,

Mahesh sacrifices `1/18`

Naresh

`1/3 - 1/3 = 0`

So,

Naresh neither gains nor sacrifices

Om

`4/9 - 1/2`

LCM of 9 and 6 = 18:

`4/9 = 8/18, 1/2 = 9/18`

`8/18 - 9/18 = -1/18`

Negative sacrifice means gain.

So,

Om gains `1/18`