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# X, Y And Z Are Sharing Profits and Losses in the Ratio of 5 : 3 : 2. with Effect from 1st April, 2019, - CBSE (Arts) Class 12 - Accountancy

ConceptRetirement and Death of a Partner - Calculation of New Profit Sharing Ratio

#### Question

X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses equally. Calculate each partner's gain or sacrifice due to the change in ratio.

#### Solution

Old Ratio (X, Y and Z) = 5 : 3 : 2

New Ratio (X, Y and Z) = 1 : 1 : 1

Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio

X's share = 5/10 - 1/3 = (15-10)/30 = 5/30 (sacrifice)

Y's share = 3/10 - 1/3 = (9-10)/30 = (-1)/30 (gain)

Z's share = 2/10 - 1/3 = (6-10)/30 = (-4)/30 (gain)

∴ Y’s Gain = 1/30

Z’s Gain = 4/30

X’s Sacrifice = 5/30

Is there an error in this question or solution?

#### APPEARS IN

Solution X, Y And Z Are Sharing Profits and Losses in the Ratio of 5 : 3 : 2. with Effect from 1st April, 2019, Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio.
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